The Department of Financial Services (DFS), operating under the Ministry of Finance, has called on all stakeholders to work together to reduce the backlog of debt recovery cases.
By streamlining processes and building an effective recovery ecosystem, the government aims to release capital tied up in prolonged litigation before Debt Recovery Tribunals (DRTs), thereby enabling its redeployment into more productive sectors of the economy.
Colloquium Held In Delhi To Chart the Way Forward
To advance this initiative, the DFS recently hosted a colloquium in New Delhi, bringing together chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of DRTs.
The event featured Supreme Court Justice SVN Bhatti as the keynote speaker and included participation from senior DFS officials, representatives of public and private sector banks, and the Indian Banks’ Association.
Technological Reforms And Operational Upgrades Discussed
During the meeting, the DFS Secretary outlined several key measures introduced to improve efficiency in DRT proceedings.
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These include the adoption of revised DRT Regulations, the mandatory implementation of e-filing systems, and the use of video-conferencing and hybrid hearing formats—all intended to shorten the turnaround time for case resolution.
Focus On Key Reform Areas
Discussions at the colloquium spanned a broad range of strategic areas designed to enhance the performance of the debt recovery mechanism. These included:
- Effective implementation of the DRT Regulations, 2024
- Stronger oversight and monitoring by banks to improve recovery outcomes
- Prioritisation of high-value cases to maximise financial returns
- Promotion of alternative dispute resolution methods, such as Lok Adalats, to settle cases swiftly
- Ongoing training for DRT officials and presiding officers
- Introduction of additional reforms to further reduce procedural delays
‘Baanknet’ E-Auction Portal: A Step Towards Transparency
Earlier this year, the Ministry launched the revamped ‘Baanknet’ e-auction portal.
This centralised digital platform aggregates listings of properties put up for sale by all public sector banks, offering a single point of access for buyers and investors.
The portal hosts a variety of assets including residential properties, commercial spaces, industrial land and machinery, vehicles, and agricultural as well as non-agricultural plots.
By bringing property listings under one digital roof, the portal simplifies the process of locating and participating in e-auctions, ultimately facilitating faster asset recovery and broader investor engagement.
A Collective Effort For Economic Impact
Through these initiatives, the DFS aims not only to clear case backlogs but also to create a more responsive, efficient, and transparent debt recovery system.
The collaborative effort across legal, banking, and administrative institutions is expected to accelerate the pace of financial recovery and contribute positively to India’s economic growth.
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