The government of India has doubled the monetary limit to 20 lakh rupees for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions.
As per the Finance Ministry, the move is aimed at helping reduce pendency of cases in DRTs. There are 39 DRTs in the country. To make the tribunals more effective and to facilitate fast disposal of debt recovery cases, the government has made several amendments in different laws, including the SARFAESI Act.
Source- The Times of India
Static/Current Takeaways Important for Indian Bank PO Exam 2018-
- The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (also known as the SARFAESI Act) is an Indian law.
- It allows banks and other financial institution to auction residential or commercial properties to recover loans.