Full formBanking & Finance
DRAstands forDebt Recovery Agent
Full Form of DRA
What is DRA?
A Debt Recovery Agent (DRA) is an individual or entity authorized by banks and financial institutions in India to recover overdue loans and advances from defaulting borrowers. The role of DRAs gained prominence after the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, which empowered banks to appoint agents for out-of-court recovery. DRAs operate under strict guidelines issued by the Reserve Bank of India (RBI) and must adhere to a code of conduct that prohibits harassment or coercion. They are typically used when borrowers fail to repay despite repeated notices, and the recovery process may involve repossession of assets, attachment of property, or negotiating settlement plans. In the Indian banking system, DRAs play a critical role in managing non-performing assets (NPAs) and improving the asset quality of lenders. For candidates preparing for banking exams such as IBPS PO, SBI Clerk, or RBI Grade B, understanding the function and legal framework of DRAs is essential as questions often appear under the financial awareness section. DRAs are distinct from Debt Recovery Tribunals (DRTs), which are quasi-judicial bodies that handle larger recovery cases. While DRAs work at the ground level, their actions must always be transparent and legally compliant to protect borrower rights.
DRA का फुल फॉर्म
ऋण वसूली एजेंट
Example
The bank appointed a DRA to recover the outstanding loan from the defaulting customer after several reminders failed.
DRA — frequently asked questions
What is the full form of DRA?
The full form of DRA is Debt Recovery Agent, an individual or entity authorized by banks to recover overdue loans from borrowers.
What is the role of a DRA in India?
A DRA helps banks recover non-performing assets by contacting defaulters, negotiating repayment plans, and repossessing assets as per SARFAESI Act guidelines, ensuring compliance with RBI norms.
Are DRAs legal in India?
Yes, Debt Recovery Agents are legal in India under the SARFAESI Act, 2002, and must follow the RBI's Fair Practices Code, which prohibits abusive or coercive recovery methods.