To speed up the debt recovery process, the Finance Ministry has set up a panel to suggest amendments to the SARFAESI and DRT Acts, including a provision for granting legal sanctity to e-notices to debtors, sources said.
The committee headed by an Additional Secretary held several meetings, and discussions are in the advanced stage in this regard, sources told PTI. Last month, the Finance Ministry held extensive deliberations with the top brass of banks and Debt Recovery Tribunals (DRTs) to enhance the efficacy of DRTs for expeditious recovery of debts.
“We have formed a committee led by the Additional Secretary to decide on relevant amendments. The aim is to make the debt recovery process less tedious and more effective. We are also planning to introduce a provision to provide legal sanctity to e-notices.
“So that an SMS and e-mails sent by banks can be considered as notice. This will help in fast-tracking the recovery of debt,” sources said.
The Debt Recovery Tribunals (DRTs) Act was enacted in 1993 to provide a legal framework for the expeditious adjudication and recovery of debts due to banks and financial institutions.
