Protecting Borrowers and Securing Stability: A Critical View of Debt Recovery Processes in India

Author(s)	Inderdeep Singh Ahluwalia
Country	India
Abstract	India's lending landscape is marked by its central role in economic growth, so it is important to look closely at how debt is recovered. This study goes into detail about the laws that govern collecting debts, which is important for keeping the economy stable. Loans are often backed by collateral or financial assets, so strict supervision is needed to make sure the terms are followed. For example, financial institutions use internal debt recovery teams and legal options like the Debt Recovery Tribunal (DRT) set up by the "Recovery of Debt Due To Banks and Financial Institutions Act, 1993" to lower the risk of default. By looking at the reasons why lenders take these extreme steps, this study sheds light on the levels that require legal action and the complicated steps that are needed. It also looks at things from the point of view of borrowers, pointing out the consequences of not paying and possible ways to ease debt loads. This study shows how lending practices, regulatory frameworks, and debt recovery mechanisms all work together in a complex way by looking at legal safeguards and borrower protections. In the end, it aims to help people understand better how to handle debt in today's financial world.
Keywords	DRT, Debt, Recovery, Tribunal, SARFAESI
Published In	Volume 6, Issue 2, March-April 2024
Published On	2024-04-10
DOI	https://doi.org/10.36948/ijfmr.2024.v06i02.16870
Short DOI	https://doi.org/gtqxvh

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