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A Study on the Effectiveness of
Remedies Available For Banks in a
Debt Recovery Tribunal - A Case
Study on Ernakulam DRT
Mukund P Unny
February 2011

©Copyrights Reserved
For more information, please contact Centre for Public Policy Research, Door No 28/3656,
Sonoro Church Road, Elamkulam, Kochi, Kerala, 682 020 India. Telephone: +91 484
6469177, Fax +91 0484 2323895, E-mail: project@cppr.in. Or visit the CPPR website at http://www.cppr.in/ Chapter: Abstract

Centre for Public Policy Research

1

Abstract
The practice of lending and borrowing is millenniums old. The concept of banking was incepted ever since humans started engaging in economic transactions of any kind. The banking system has evolved since then. We have well-established banks now in the 21st century-huge ones having more than $1 trillion in assets. The banking (or credit) sector is one that hold the reins of the world economy. Without the presence of a well-established credit-system, we cannot expect the economy to roll on. A dynamic banking system is essential for a thriving economy. Banking in India faces the difficulty of mounting NonPerforming Assets (NPA), which is unfavourable for the bank’s financial health. Banks have had to wait for very long time in Civil Courts to get cases concerning debt-recovery disposed and recovered. This led to the trapping of crores of rupees in litigation proceedings, which the bank could not re-advance, forcing the Government to establish a Debt Recovery
Tribunal (DRT) to assure expeditious recovery proceedings and speedy adjudication of matters concerning debt recovery of banks. This paper aims to study the functioning of the
Debt Recovery Tribunal, established following the Recovery of Debts due to Banks and

www.cppr.in

Financial Institutions Act, 1993.

Centre for Public Policy Research

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1.

Introduction

1.1. Introduction to the Banking System in India
The banking system in India


References: Khan, M.Y. 2007. Indian Financial System (2nd Edition). New Delhi: Tata McGraw-Hill Prasad, S Shyam
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