Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993
The RDDBFI Act, 1993 provides for establishment of Debts Recovery Tribunals (DRTs) with original jurisdiction and Debts Recovery Appellate Tribunals (DRATs) with appellate jurisdiction, for expeditious adjudication and recovery of debts due to banks and financial institutions, insolvency resolution and bankruptcy of individuals and partnership firms and connected matters therewith.The Act aims to safeguard the interest of banks and financial institutions as lenders, while not discouraging borrowers.The Tribunals have not yet commenced taking up insolvency resolution and bankruptcy matters as the related provisions are not yet in force.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.
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