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RECOVERY OF LOANS
What is the primary legal framework governing the recovery of dues by banks in India through special tribunals?
The Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 established Debt Recovery Tribunals (DRTs) for expeditious recovery of dues above Rs. 20 lakh.
What is the minimum threshold for banks to file recovery cases before a Debt Recovery Tribunal (DRAT)?
Cases above Rs. 20 lakh are eligible for DRT filing.
Under SARFAESI Act 2002, what is the minimum outstanding loan amount for a secured creditor to invoke the Act?
The SARFAESI Act can be invoked when the outstanding loan amount is Rs. 1 lakh or more and the loan is classified as a Non-Performing Asset (NPA).
What does the term 'secured creditor' mean under the SARFAESI Act 2002?
A creditor holding a security interest over any property of the borrower.
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