India’s DFS Hosts Colloquium to Strengthen Debt Recovery Mechanism via DRTs

In a significant push towards reinforcing the institutional framework of debt recovery in India, the Department of Financial Services (DFS) under the Ministry of Finance convened a high-level colloquium on May 24, 2025, at Vigyan Bhavan, New Delhi. The gathering brought together Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs), along with senior functionaries from DFS, representatives of public and private sector banks, and delegates from the Indian Banks’ Association (IBA).

The colloquium was graced by Justice S.V.N. Bhatti, Judge of the Supreme Court of India, who delivered the keynote address. In his address, Justice Bhatti emphasized the vital role played by DRTs in ensuring the stability of India’s credit and banking ecosystem. He called for judicial discipline, technological integration, and collaborative strategies to expedite the adjudication and recovery process.

DFS Initiatives for DRT Reform

In his opening remarks, the Secretary of DFS highlighted several transformational initiatives recently implemented to enhance the effectiveness of DRTs. Among the key reforms are:

• Revised DRT Regulations, 2024: Tailored to bring uniformity, transparency, and improved procedural flow.

• Mandatory e-Filing: All cases are now to be filed electronically, ensuring faster registration and improved case tracking.

• Video-Conference and Hybrid Hearings: These measures have been adopted to facilitate remote access, reduce delays, and enhance convenience for stakeholders across geographies.

These steps are part of a broader strategy to reduce the turnaround time for resolution of debt recovery cases and improve the performance of recovery tribunals.

Key Themes of the Colloquium

The colloquium served as a platform for in-depth discussions on a wide range of critical areas affecting debt recovery proceedings. Some of the pivotal themes addressed included:

• Effective Implementation of DRT Regulations, 2024: Stakeholders deliberated on operational challenges and the need for sensitization of tribunal officers to new regulations.

• Monitoring Mechanisms for Banks: The importance of active oversight by creditor banks was underscored, with an emphasis on tracking case progress and supporting DRTs with requisite documentation and legal resources.

• Prioritization of High-Value Cases: The forum recommended that tribunals should give precedence to high-stake cases to maximize recoveries and release blocked capital swiftly.

• Alternative Dispute Resolution (ADR): Leveraging Lok Adalats and other ADR mechanisms was proposed as an effective tool for expeditious settlement of disputes, thereby reducing litigation burden.

• Capacity Building: Participants emphasized the need for continuous training and upskilling of Presiding Officers and tribunal staff to align with evolving legal and technological requirements.

• Further Procedural Reforms: Suggestions were made to further simplify and streamline case workflows through automation, digitization, and process optimization.

Collaborative Approach for a Stronger Recovery Ecosystem

A recurring theme of the colloquium was the call for collective responsibility and integrated action among all stakeholders—DFS, DRT officials, banks, and financial institutions. Participants agreed that reducing pendency in DRTs would lead to faster resolution of non-performing assets (NPAs), unlocking capital trapped in prolonged litigation. This, in turn, would allow the reallocation of financial resources toward productive sectors of the economy, supporting growth and financial inclusion.

The event concluded with a reaffirmation of commitment by all stakeholders to create an efficient, transparent, and accountable recovery ecosystem. It marked a pivotal step toward modernizing India’s debt recovery infrastructure and aligning it with global best practices.