The meeting, attended by senior officials from public and private sector banks, as well as representatives from the Indian Bank Association (IBA) and the Ministry of Finance, focused on addressing key challenges and enhancing the efficiency of debt recovery processes.
During the discussions, several important resolutions were agreed upon. One of the primary recommendations was for banks to establish robust monitoring and oversight mechanisms to effectively manage the backlog of pending cases in DRTs.
It was emphasised that adopting best practices already in place within various DRTs could lead to significantly improved outcomes.
Moreover, banks were urged to create clearly defined policies regarding small and high-value cases awaiting resolution in DRTs. This would help optimise recovery efforts and streamline processes, ensuring that financial resources are effectively utilised.
The importance of considering transaction costs when formulating settlement policies was also highlighted, aiming to strike a balance between cost-effectiveness and recovery success.
The stakeholders collectively committed to reducing case pendency and implementing effective measures that would enable the capital tied up in unresolved cases to be reintegrated into the economy for productive use.
Finally, the adoption of the DRT Regulations 2024, which offer enhanced features compared to the previous DRT Regulation 2015, was strongly advocated to make the entire process more efficient and less time-consuming.