With reference to Debt Recovery Tribunals DRTs consider the following statements 1 They have been es...........

Indian Economy (Easy) Money and banking

With reference to Debt Recovery Tribunals (DRTs),consider the following statements:

1. They have been established with the objective of providing expeditious adjudication and recovery of debts due to banks and financial institutions.

2. They were set up under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Money and banking

Prepare through Micro-courses

Try Now

Explanation:

Debt Recovery Tribunals were established to facilitate the debt recovery involving banks and other financial institutions with their customers. DRTs were set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993. Appeals against orders passed by DRTs lie before Debts Recovery Appellate Tribunal (DRAT). DRTs can take cases from banks for disputed loans above Rs 10 Lakhs. At present, there are 33 DRTs and 5 DRATs functioning at various parts of the country. In 2014, the government has created six new DRTs to speed up loan related dispute settlement.