BANKING AWARENESS-Debt Recovery Tribunal
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Keeping in line with the international trends on helping financial institutions recover their bad Debt quickly and efficiently, the Government of India has constituted 33 Debt Recovery Tribunals and five Debt Recovery Appellate Tribunals across the country.The Debt Recovery Tribunals (DRTs) have been established by the Government of India under an Act of Parliament (Act 51 of 1993) for expeditious adjudication and recovery of debts due to banks and financial institutions. The Debt Recovery Tribunal is also the appellate authority for appeals filed against the proceedings initiated by secured creditors under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act.The Debt Recovery Tribunals are located across the country. Some cities have more than one Debt Recovery Tribunal located therein. New Delhi and Mumbai have three Debt Recovery Tribunals. Chennai and Kolkata have two Debt Recovery Tribunals each. One Debt Recovery Tribunal each has been constituted at Ahmdabad, Allahabad, Arungabad, Bangalore, Chandigrah, Coimbatore, Cuttack, Ernakulam, Guwahati , Hydrabad, Jabalpur, Jaipur, Lucknow, Nagpur, Patna, Pune, Ranchi and Vishakapatnam.There area number of States that do not have a Debt Recovery Tribunal . The Banks & Financial Institutions and other parties in these States have to go to Debt Recovery Tribunal located in other states having jurisdiction over there area.. Thus the territorial jurisdiction of some Debt Recovery Tribunal is very vast. For example, the Debt Recovery Tribunal located in Guwahati has jurisdiction over all the seven North Eastern States. Similarly, the territorial -jurisdiction of the Debt Recovery Tribunal located at Chandhigarh too has a very wide jurisdiction over the States of Punjab, Harayana, Chandhigarh.The setting up of a Debt Recovery Tribunal is dependent upon the volume of cases. Higher the number of cases wi thin a terri torial area, more Debt Recovery Tribunal would be set up. Each Debt Recovery Tribunal is presided over by a Presiding Officer. The .Presiding Officer is general ly a judge of the rank of Dist. & Sessions Judge. A Presiding Officer of a Debt Recovery Tribunal is assisted by a number of officers of other ranks, but none of them need necessarily have a judicial back ground. Therefore, the Presiding Officer of a Debt Recovery
Tribunal is the sole judicial authority to hear and pass any judicial order.Each Debt Recovery . Tribunal has two Recovery Officers. The work amongst the Recovery Officers is allocated by the Presiding Officer. Though a Recovery Officer need not be a judicial Officer, but the orders passed by a Recovery Officer are judicial in nature, and are appealable before the Presiding Officer of the tribunal.
CREDIT RATING AGENCIES IN INDIA
The Credit Rating Agencies in India were mainly formed to assess the condition of the financial sector and to find out avenues for more improvement. The credit rating agencies offer various services as -
*Operation upgradation
*Training to employee
*Scrutinize new projects
*rate different sectors
The Two most important credit rating agencies in India are ICRA and CRISIL.
ICRA:
ICRA Limited (ICRA) is one of India’s premier financial information services company.ICRA Limited is one of the Credit Rating Agency in India.ICRA also provide professional financial services in the Asia-Pacific region through i ts subsidiaries. ICRA Limited, was established in 1991, and was originally named Investment Information and Credit Rating Agency of India Limited (IICRA India).Headquarters of ICRA is at New Delhi , India.IICRA India changed i ts name to ICRA Limited, and went public on 13 April 1997.ICRA Limited listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).ICRA Limited is a Public Company.ICRA offers Industry Financial services and Credit ratings services.CEO of ICRA Limited is Naresh Takkar.
CRISIL:
CRISIL or Credit Rating and Information Services of India Ltd. is a global analytical company which provides services like ratings, research, and risk & policy advisory.CRISIL is the largest credit rating agency in India.CRISIL was established on 1987.CRISIL pioneered ratings in India more than 20 years ago Today, CRISIL is the undisputed business leader in Ratings.CRISIL’s Global Analytical Centre (GAC) supports the Global Resource Management initiative of Standard & Poor’s (S&P).
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