Full formBanking & Finance
DRWstands forDebt Recovery Window
Full Form of DRW
What is DRW?
DRW stands for Debt Recovery Window, a mechanism established by the Reserve Bank of India (RBI) to facilitate the swift resolution of non-performing assets (NPAs) and stressed loans in the Indian banking sector. Under the Insolvency and Bankruptcy Code (IBC) framework, the DRW provides banks and financial institutions with a dedicated channel to initiate recovery proceedings against defaulting borrowers without the delays typical of conventional legal routes. It acts as a bridge between lenders and the adjudicating authorities, enabling faster admission of insolvency petitions and ensuring that the recovery process adheres to strict timelines. The DRW is primarily used by scheduled commercial banks, asset reconstruction companies (ARCs), and other eligible creditors when they face difficulty in recovering dues from corporate or individual defaulters. It aims to reduce the burden of bad loans on bank balance sheets and improve credit discipline in the economy. In the context of Indian regulatory updates, the DRW is often highlighted in financial news and policy announcements. For students preparing for banking examinations conducted by IBPS, SBI, and RBI Grade B, understanding the DRW is crucial as questions frequently appear on NPA resolution mechanisms. The Debt Recovery Window represents a significant step towards strengthening India's financial ecosystem by providing a transparent and time-bound recovery avenue.
DRW का फुल फॉर्म
ऋण वसूली खिड़की
Example
Under the RBI's new guidelines, banks can now approach the Debt Recovery Window (DRW) for expedited resolution of their stressed assets.
DRW — frequently asked questions
What is the full form of DRW?
DRW stands for Debt Recovery Window, a mechanism introduced by the RBI to facilitate faster resolution of non-performing assets.
How does the Debt Recovery Window work?
The DRW works by providing banks a dedicated channel under the IBC to initiate insolvency proceedings quickly. It streamlines the process by ensuring strict timelines and reducing legal delays, helping lenders recover dues from defaulters efficiently.
Is DRW important for banking exams?
Yes, DRW is a key topic for banking exams like IBPS PO, SBI PO, and RBI Grade B. Questions often appear on NPA resolution mechanisms, including the Debt Recovery Window, under the Financial System section.