Important laws relating to recovery of dues
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What is the primary legislation governing the recovery of debts due to banks and financial institutions in India?
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) is the primary legislation, which established Debt Recovery Tribunals (DRTs) to fast-track recovery of dues above Rs. 20 lakh.
What is the full form of RDDBFI Act?
Recovery of Debts Due to Banks and Financial Institutions Act
What is the minimum debt amount for which a bank can approach the Debt Recovery Tribunal (DRT)?
A bank can approach the DRT for recovery of debts of Rs. 20 lakh and above, as the RDDBFI Act applies to cases where the debt is not less than this threshold.
In which year was the RDDBFI Act enacted?
1993
What is the full form of SARFAESI and which year was it enacted?
SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and it was enacted in the year 2002.
What is the prescribed time limit for DRT to decide a case?
180 days from filing the application
Under SARFAESI Act 2002, what notice period must a bank give a borrower before enforcing security interest?
A bank must issue a 60-day notice to the borrower demanding repayment of dues before enforcing security interest by taking possession of the secured asset.
What is a Recovery Certificate issued by DRT?
Order directing borrower to pay dues to the bank
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