It also plans to get Cabinet approval for this. But in case that gets a bit delayed they might even introduce the amendments and then go ahead and seek the Cabinet nod after that.
There are a couple of important aspects to the amendments of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act.
First, once the amendments are moved, the banks and financial institutions will be able to go in for e-filing of their recovery claims which is not possible at the moment. So this will basically expedite the process of actually accepting claims.
Second, of course, the final order of the DRT will have to come in within 30 days of the hearing. This is an important timeline that has been set by the government again basically to expedite the process.
The third aspect is that secured creditors will get the first priority against other claimants.
The fourth aspect that they are looking into it is the fact that within the two hearing itself the entire case will have to be wound up. Therefore, it’s not that they will be able to go in for too many adjournments which is what is happening so far.
Lastly, there is also talk about increasing the age limit of the presiding officers of the Debt Recovery Tribunals as well as the chairman of the Debt Recovery Appellate Tribunal. This is basically done so that too many retirements don’t happen in the middle of important cases.