The Department of Financial Services (DFS) has urged for mandatory e-filing and greater use of digital tools like hybrid hearings and e-DRT 2.0 to reduce delays and speed up the disposal of debt recovery cases, as per the Finance Ministry.
The Department of Financial Services (DFS) has pushed for mandatory e-filing and greater use of digital tools such as hybrid hearings and e-DRT 2.0 to reduce delays and speed up disposal of debt recovery cases, according to a statement by the Finance Ministry.
The emphasis came during a colloquium of Chairpersons of Debts Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debts Recovery Tribunals (DRTs) held at Vigyan Bhavan in New Delhi. Highlighting the need to tackle rising pendency, the ministry said that "a key focus of the deliberations was on reducing pendency and accelerating disposal of cases," adding that tribunals were urged to adopt best practices followed by high-performing DRTs.
Push Towards Digitisation and Efficiency
The DFS underscored a strong push towards digitisation to improve efficiency in the system. "Mandatory e-filing, hybrid hearing facilities, and continuous enhancements under e-DRT 2.0 are contributing to improved efficiency and transparency," the ministry said, encouraging stakeholders to maximise the use of these tools.
The statement noted that recent efforts, such as capacity building and infrastructure strengthening, have already shown results. "With renewed emphasis on capacity building and strengthening infrastructure through targeted training programmes, DRTs have witnessed an encouraging increase in monthly disposal rates," it said.
Enhanced Role for Banks and Alternative Mechanisms
The government also stressed the need for banks to play a more proactive role in recoveries. Discussions focused on "strengthening oversight and monitoring mechanisms within banks to enhance recoveries through DRTs" and "prioritising high-value cases for optimal recovery outcomes," the ministry said.
Focus on Mediation and Lok Adalats
To further speed up resolution, the DFS highlighted alternative mechanisms such as Lok Adalats and mediation. It suggested "identifying the cases for mediation in respect of pending as well as fresh cases" to reduce the burden on tribunals.
Improving Asset Recovery
On the asset recovery front, the ministry said the revamped BAANKNET platform is helping improve outcomes. "The revamped BAANKNET e-auction platform is further facilitating better asset visibility and value realisation," it noted.
Commitment to a Robust Framework
The DFS said it will continue to hold such engagements as part of efforts to strengthen the system. These colloquiums serve as "an important platform for policy dialogue, reform, and performance enhancement," the ministry added, noting that they have already led to "tangible improvements in the functioning of the Tribunals."
Reaffirming its broader objective, the ministry said DFS "remains committed to ensuring a robust, transparent, and efficient adjudication framework." (ANI)
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