CAIIB Paper 4 BRBL Module C Unit 11 : The Recovery Of Debts And Bankruptcy Act, 1993 (New Syllabus)
IIBF has released the New Syllabus Exam Pattern for CAIIB Exam 2023. Following the format of the current exam, CAIIB 2023 will have now four papers. The CAIIB Paper 4 (BANKING REGULATIONS AND BUSINESS LAWS) includes an important topic called “The Recovery Of Debts And Bankruptcy Act, 1993”. Every candidate who are appearing for the CAIIB Certification Examination 2023 must understand each unit included in the syllabus.
In this article, we are going to cover all the necessary details of CAIIB Paper 4 (BRBL) Module C (IMPORTANT ACTS/LAWS & LEGAL ASPECTS OF BANKING OPERATIONS – PART B) Unit 11 : The Recovery Of Debts And Bankruptcy Act, 1993, Aspirants must go through this article to better understand the topic, The Recovery Of Debts And Bankruptcy Act, 1993 and practice using our Online Mock Test Series to strengthen their knowledge of The Recovery Of Debts And Bankruptcy Act, 1993. Unit 11 : The Recovery Of Debts And Bankruptcy Act, 1993
- In 1991, the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (DRT Act, as commonly known or called) was passed and it came into operation from 24 June 1993. This Act constituted the special, ‘Debt Recovery Tribunals’ for speedy recovery.
- Later in 2019 the name of the Act as stated above was changed to ‘The Recovery of Debts and Bankruptcy Act, 1993’ to also cater to insolvency resolution and bankruptcy of individuals and partnership firms.
Extent, Commencement, Application
- The Act is now applicable to the whole of India. and came into force on the 24th day of June, 1993.
- In terms of Section 1(4) of the Act , the provisions of this 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. However, the Government later raised the limit from Rs. 10 lacs to 20 lacs.
- Appellate Tribunal: It is a body established for the purpose of preferring an appeal against the order passed by the tribunal. It is established under the sub-Section (1) of Section 8 of the Act.
- Chairperson: means a chairperson of an appellate tribunal appointed under Section 9.
- Presiding Officer: means the presiding officer of the Debts Recovery Tribunal appointed under sub-Section (1) of Section 4.
- Recovery Officer: means a recovery officer appointed by the Central Government for each tribunal under the sub-Section (1) of Section 7. These officers are appointed under the Act for implementing the recovery orders passed by the Tribunal.