- Why in news
- On 2 May 2026, the Department of Financial Services (DFS) held a colloquium of DRAT Chairpersons and DRT Presiding Officers at Vigyan Bhavan, New Delhi. It focused on cutting pendency through digitisation, mediation and Lok Adalats.
- What it is
- Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunals (DRATs) are specialised tribunals that decide bank and financial institution claims for recovery of dues. They were set up under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 so that banks need not wait for slow civil courts. A DRT hears the original case; a DRAT hears appeals against DRT orders.
- Who convened it
- The Department of Financial Services in the Finance Ministry held the colloquium with tribunal heads and bank representatives.
- Technology push
- Mandatory e-filing, hybrid hearings and e-DRT 2.0 are being used to improve efficiency and transparency.
- Alternate dispute resolution
- Lok Adalats were highlighted for quick disposal, and mediation was suggested for pending and fresh cases.
- Auction platform
- The revamped BAANKNET e-auction platform is meant to improve asset visibility and value realisation.
- Legal basis
- DRTs and DRATs were created under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, following the Narasimham Committee recommendations.
- Appeal route
- Appeals against DRT orders go to the DRAT; DRTs also hear SARFAESI Act matters as the first forum of appeal against secured creditors' actions.
Don’t confuse with DRT vs NCLT: DRTs handle recovery claims of banks and financial institutions. NCLT handles insolvency and resolution under the IBC for companies.
Don’t confuse with DRT vs DRAT: DRT is the first-instance tribunal; DRAT is the appellate tribunal against DRT orders.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Faster recovery lowers bank NPAs and improves credit flow.
- Digital tribunals improve access and transparency in debt adjudication.
Problems
- Large pendency of cases and vacancies of presiding officers slow disposal.
- Low recovery rates in DRT cases compared with claim amounts.
Way forward
- Fill vacancies, train staff and expand e-DRT and hybrid hearings.
- Use mediation and Lok Adalats and prioritise high-value cases.
Put in your answer
Statutory basis: The RDDBFI Act, 1993 created DRTs and DRATs, following the Narasimham Committee.
- 2025Mains GS2 · Q2Need for administrative tribunals versus courts; impact of 2021 tribunal rationalization reforms.
- 2018Mains GS2 · Q12Whether tribunals curtail ordinary courts' jurisdiction; constitutional validity and competency of tribunals.
- 2019Mains GS2 · Q2How the Central Administrative Tribunal functions as an independent judicial authority.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting statutory tribunals relevant to NPA resolution, but this release is a colloquium with no new provision or number.
Worth revising until Prelims 2027: most news questions come within two years of the event.