RBI to set up 7 more Debt Recovery Tribunals

RBI to set up 7 more Debt Recovery Tribunals

NEW DELHI, JAN 16: The Reserve Bank of India (RBI) will set up seven more Debt Recovery Tribunals (DRTs) and five Appellate Tribunals in a bid to tackle the non-performing assets (NPAs) effectively.

Supporting the criminal proceedings against the `wilful' defaulters, he said a few bookings under the proceedings would set an example. Allaying the fears that bulk of the Non-Performing Assets (NPAs) was from priority sector, he said NPA from priority sector constituted was lower at 46 per cent than that of the corporate sector at 48 per cent.

He said market discipline was a must for the public sector banks (PSBs) and above all the proposed introduction of Bankruptcy and Foreclosure laws and setting up of Credit Information Bureaux would help in dealing with the impaired assets, Talwar said.

While pursuing compromise settlements arrived at Lok Adalats more effectively, banks were also advised to constitute Settlement Advisory Committees (SACs) for compromise settlements of chronic cases of NPAs under the small scale sector, he added.