BANKING AFFAIRS

Detailed explanation-1: -New Delhi: The government on Thursday doubled the monetary limit to ₹ 20 lakh for filing loan recovery applications in the Debt Recovery Tribunals (DRT) by banks and financial institutions. The move is aimed at helping reduce pendency of cases in the 39 DRTs in the country.

Detailed explanation-2: -The Act is applicable to cases where the amount of debt due to any bank or financial institution defined under the Act or a consortium of banks or financial institutions is Rs. 20 lakh or more.

Detailed explanation-3: -The application shall be filed by the applicant with the Registrar within whose jurisdiction the applicant is functioning as a bank or financial institution, as the case may be, for the time being. Rs. 1, 000 for every one lakh, subject to a maximum of Rs. 1, 50, 000.

Detailed explanation-4: -i) No Court Fee is involved. iii) Lok Adalat to settle banking disputes involving amount up to Rs. 20 lakh.

Detailed explanation-5: -What is the minimum due amount to file a case in DRT? The minimum amount owed to financial institutions (FIs) and banks should be more than 20 lac rupees.