The Reserve Bank of India (RBI), in a bid to speed up recovery of non-performing assets, is planning guidelines for settling doubtful loans upto Rs 10 lakh, which number over Rs 60 lakh. The norms would also include settlement of dues through Lok Adalats.
The government will also increase the number of debt recovery tribunals to 22 by adding seven new DRTs by the end of December, a senior finance ministry official said.
The government has also decided to set up Lok Adalats at the district and taluka levels and will use the services of existing judicial officers, if the banks have to approach the civil judges for settling dues.
The matter of settlement of dues was discussed on Thursday at a meeting of public sector banks with banking division officials. Though instructions had been issued in 1987 and 1989 for settlement through Lok Adalats, at present settlements can