The Department of Financial Services (DFS), under the Ministry of Finance, recently organized an important colloquium bringing together Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs) on May 24, 2025, at Vigyan Bhavan, New Delhi. The event was honored by the presence of Justice S.V.N. Bhatti, Judge of the Supreme Court of India, who delivered the keynote address. Alongside senior DFS officials, representatives from public and private sector banks and the Indian Banks’ Association also participated, highlighting the collaborative nature of the forum.
During the colloquium, the Secretary of DFS highlighted several significant initiatives aimed at improving the functioning and efficiency of the DRTs. These include the adoption of revised DRT Regulations, mandatory e-filing of cases, and the introduction of hearing options via video conferencing and hybrid formats. Such reforms are designed to reduce the turnaround time for adjudication, making the debt recovery process smoother and faster.
Discussions covered a wide range of issues to further enhance the effectiveness of the tribunals. Key topics included the rigorous implementation of the updated 2024 DRT Regulations, the need for stronger monitoring and oversight by banks to boost recoveries, and the prioritization of high-value cases to maximize impact. The use of alternative dispute resolution mechanisms such as Lok Adalats was also emphasized to ensure swift resolution of pending matters.
The colloquium underlined the importance of ongoing training for Presiding Officers and tribunal staff to keep pace with evolving practices and technologies. Participants also explored additional reforms aimed at further reducing delays in tribunal proceedings, reflecting a shared commitment to making the debt recovery process more efficient and transparent.
All stakeholders were urged to work together closely to reduce the backlog of cases in DRTs. This collaboration is seen as crucial not only for improving the tribunals’ performance but also for unlocking capital tied up in unresolved cases, enabling it to be redirected towards productive economic activities. The event served as a reminder of the vital role these institutions play in supporting financial stability and growth through effective debt recovery.