CAIIB · BRBL

DRT AND INDEMNITY

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

What does DRT stand for and under which Act was it established?

A

DRT stands for Debt Recovery Tribunal, established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act).

Q

Under which Act were Debt Recovery Tribunals (DRTs) established in India?

A

The Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

Q

What is the minimum debt threshold for filing a case before the DRT?

A

A bank or financial institution can file a case before the DRT for recovery of debts of Rs. 20 lakh and above.

Q

What is the full form of RDDBFI Act?

A

Recovery of Debts Due to Banks and Financial Institutions Act.

Q

What is the appellate authority above the DRT?

A

The Debt Recovery Appellate Tribunal (DRAT) is the appellate authority above the DRT, and appeals must be filed within 30 days of the DRT order.

Q

Which section of the Indian Contract Act, 1872 defines indemnity?

A

Section 124 defines a contract of indemnity.

Q

What is the time limit for DRT to decide a case after the application is made?

A

The DRT is required to dispose of the application as expeditiously as possible and endeavour shall be made to dispose of it within 180 days from the date of receipt.

Q

What is the minimum number of DRTs that the Central Government can establish?

A

Central Government may establish as many DRTs as it thinks fit.

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