Debt tribunals de-cluttered to focus on high value NPAs
The Finance Ministry on Tuesday doubled the minimum threshold for filing cases in debt recovery tribunals (DRT) to Rs20 lakh to de-clutter DRTs so that they can focus on quick recovery of high value non-performing assets (NPAs).
 
It also advised public sector banks (PSBs) to develop an e-auction portal in collaboration with the Indian Banks' Association (IBA) and upload details of properties of all defaulters on the common platform to have an enlarged bidder base.
 
"The Department of Financial Services has adopted a targeted approach to make debt recovery laws and processes more effective so as to increase recovery of public money from defaulting borrowers," Finance Services Secretary Rajeev Kumar told reporters. 
 
He said the government is expecting good recovery in the second quarter.
 
As per the government data, there were 38,376 cases with a default amount between Rs 10 lakh and Rs 20 lakh pending in DRTs till June 30. This accounted for 38 per cent of the total pending cases but amounted to only four per cent of the total value, he said.
 
The share of cases in the range of Rs10 lakh to Rs20 lakh filed with the DRTs in recent months increased to 41%.
 
"Data indicates that 80%-85% of NPA cases in the range of Rs10 lakh to Rs20 lakh are fully secured. For their recovery, lenders can take action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act," Kumar said.
 
The secretary added that while auctioning of properties is a core activity of banks to ensure recoveries, in the absence of modern techniques, positive results from property auctions were limited and potential buyers were not fully informed of all details.
 
"Now PSBs have been advised to get together with the IBA steering an initiative to redesign the PSB e-auction websites. Details of auctionable properties across banks have been standardized and a common platform is on the anvil," he said.
 
The government has asked state governments to monitor and ensure that orders are passed by the respective district administrations within the stipulated 60 days time limit and extend help to banks and financial institutions to get possession of secured property of defaulting borrowers.
 
"Over 10,000 applications from PSBs are pending (at the districts)... District Magistrates are required to pass orders on secured asset seizure within 60 days by banks for their further disposal," he said.
 
Kumar said the government has started computerizing the records of cases across all 39 DRTs and five Debt Recovery Appellate Tribunals. Similar to the e-court software, the e-DRT will enable banks and asset reconstruction companies (ARC) to e-file cases and access all relevant records.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

User

Rupee inches closer to 73, hits 72.91/$
Continuing its downward trend, the Indian rupee hit a new low of Rs 72.91 on Wednesday morning.
 
The rupee has been on a down slide owing to inflationary pressure and decline among its global peers against the dollar.
 
On Wednesday, it opened at a low of 72.78 per dollar, against the previous close 72.69 per dollar.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

User

Inflationary risks depress rupee; touches new low of 72.74
Inflationary risks along with broadly negative global cues depressed the Indian rupee to a new low of 72.74 to the US dollar during late afternoon session on Tuesday.
 
At 3.35 p.m. the rupee traded around 72.64 per dollar, against the previous close of 72.45 per dollar at the Inter-Bank Foreign Exchange Market.
 
According to analysts, expectations of higher overall inflation rate, growing protectionism in global trade and an increasing outflow of foreign funds from the country's equity market have subdued the Indian currency.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

online financial advisory
Pathbreakers
Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
online financia advisory
The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
financial magazines online
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
financial magazines in india
MAS: Complete Online Financial Advisory
(Includes Moneylife Online Magazine)