**Policy Summary:**
This notification, S.O. 4312(E), issued by the Ministry of Finance, Department of Financial Services, Government of India, on September 6, 2018, amends the applicability criteria of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. Specifically, it raises the pecuniary limit for filing applications for debt recovery in Debts Recovery Tribunals (DRTs).
Previously, the Act did not apply where the debt due to any bank or financial institution (or consortium thereof) was less than ten lakh rupees. This notification, exercising the powers conferred by subsection (4) of section 1 of the Act, now specifies that the Act will not apply where the amount of debt due is less than twenty lakh rupees.
The purpose of this change is to raise the threshold for cases pursued through DRTs. The order is referenced as F. No. 3/4/2018-DRT and was issued by Suchindra Misra, Joint Secretary.
Key Entities Referenced
Recovery of Debts due to Banks and Financial Institutions Act, 1993: A law concerning the recovery of debts owed to banks and financial institutions in India.
Ministry of Finance: The government ministry responsible for financial matters.
Department of Financial Services: A department within the Ministry of Finance.
New Delhi: The location of the notification, which is the capital of India.
Central Government: The Union Government of India.
Debts Recovery Tribunals: Tribunals established for the purpose of recovering debts due to banks and financial institutions.
Suchindra Misra: The Joint Secretary who issued the notification.
Mayapuri, New Delhi: Location of the Government of India Press where the document was uploaded.
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5208 GI/18 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 6th September, 2018
S.O. 4312(E).—Whereas, sub-section (4) of section 1 of the Recovery of Debts due to Banks and Financial
Institutions Act, 1993 ( 51 of 1993) provides that the provisions of the said Act shall not apply where the amount of debt
due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or
such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify;
And whereas, the Central Government has considered it necessary to raise the pecuniary limit from ten lakh
rupees to twenty lakh rupees for filing application for recovery of debts in the Debts Recovery Tribunals by such banks
and financial institutions.
Now therefore, in exercise of the powers conferred by sub-section (4) of section 1 of the Recovery of Debts
Due to Banks and Financial Institutions Act, 1993, the Central Government hereby specifies that the provisions of the
said Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or
financial institutions is less than twenty lakh rupees.
[F. No. 3/4/2018-DRT]
SUCHINDRA MISRA, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.