Full Form of DRT

What is DRT?

The Debt Recovery Tribunal (DRT) is a quasi-judicial body established by the Government of India under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. It specializes in adjudicating disputes related to debt recovery for banks and financial institutions. DRTs were introduced to expedite the recovery process and reduce the burden on civil courts. Currently, there are 33 DRTs across India, with appellate tribunals (DRATs) for appeals. The tribunal handles cases where the debt amount exceeds ₹20 lakhs. DRTs have the power to pass orders for attachment and sale of assets, appointment of receivers, and other measures to recover dues. They are widely used by public and private sector banks, and foreign banks operating in India. The establishment of DRTs has significantly improved the efficiency of debt recovery, helping reduce non-performing assets (NPAs). For students preparing for banking, finance, and law exams, understanding DRT is essential. It is often a topic in questions about banking reforms and financial legislation. The tribunal follows a summary procedure, making it faster than regular courts. Despite its effectiveness, DRTs face challenges like backlog of cases and appeal processes. Overall, DRT is a cornerstone of India's financial legal framework, ensuring timely justice for lenders while balancing borrower rights.

DRT का फुल फॉर्म

Example

The bank approached the DRT for an order to seize the defaulter's property and recover the outstanding loan of ₹50 lakhs.

DRT — frequently asked questions

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