Monetary limit raised for filing application in Debts Recovery Tribunals by banks and financial institutions to Rs. 20 lakh rupees from ten lakh
In 1981, the Committee on the Financial System examined the problem faced by the Banks and financial institutions in recovering loans and enforcement of securities charge, and advised the setting up of the Special Tribunals with special powers for adjudication of such matters and speedy recovery as critical to the successful implementation of the financial sector reforms.
Keeping in view the recommendations of the above Committees, the Recovery of Debts due to Bank and Financial Institutions Bill, 1993 was introduced in the Parliament.
As per sub section (4) of Section 1, the provisions of the Act not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less then ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify.
Now, the Government has raised the said limit to Rs. 20 lakhs.
Monetary limit raised for filing application in Debts Recovery Tribunals
MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 6th September, 2018
S.O. 4312(E).—Whereas, sub-section (4) of section 1 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 ( 51 of 1993) provides that the provisions of the said Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify;
And whereas, the Central Government has considered it necessary to raise the pecuniary limit from ten lakh rupees to twenty lakh rupees for filing application for recovery of debts in the Debts Recovery Tribunals by such banks and financial institutions.
Now therefore, in exercise of the powers conferred by sub-section (4) of section 1 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the Central Government hereby specifies that the provisions of the said Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than twenty lakh rupees.
[F. No. 3/4/2018-DRT]
SUCHINDRA MISRA, Jt. Secy
