Question

DRT stands for

• A. Debentures Recovery Tribunals
• B. Debts Recovery Tribunals
• C. Demands Recovery Tribunals
• D. Deposits Restore Tribunals

Hint:

DRT = Debts Recovery Tribunal. It helps banks recover large unpaid loans through a fast-track process.

Answer 1

The Correct Option is B

Debts Recovery Tribunals (DRTs) were set up under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
Purpose:
- Speedy recovery of loans above Rs. 20 lakhs from defaulters.
- Reduce burden on civil courts.
Powers:
- DRT can summon individuals, demand records, and pass final orders.
- Appeals go to DRAT (Debts Recovery Appellate Tribunal).
Incorrect Options:
- There are no such tribunals for debentures, deposits, or demands named in those options.