Significant Backlog in Debt Recovery: Challenges for Banks
Challenges of Debt Recovery for Banks
Banks are grappling with a staggering backlog in debt recovery cases, expected to take up to seven years to clear. Currently, there are over 200,000 cases pending at Debt Recovery Tribunals (DRTs).
Government Initiatives to Boost Capacity
To tackle this issue, the government is initiating plans to enhance the capacity of DRTs and National Company Law Tribunals (NCLTs). This aims to strengthen the Insolvency and Bankruptcy Code and improve the efficiency of debt recovery.
Conclusion
The recent initiatives are crucial to alleviate the backlog and ensure a more effective debt recovery system, ultimately reducing the burden on the existing tribunals.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.