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CAIIB Paper 4: Banking Regulations & Business LawsModule B: Important Acts/Laws & Legal AspectsUnit 10: Recovery of Debts and Bankruptcy Act (DRT) 1993
30s

Q1. What is the minimum pecuniary threshold for a bank to file an Original Application (OA) before the Debt Recovery Tribunal (DRT), and what percentage of the debt determined by the DRT must a borrower deposit to file an appeal before the Debt Recovery Appellate Tribunal (DRAT)?

A
Minimum debt: Rs. 50 Lakhs; DRAT appeal pre-deposit: 75%
B
Minimum debt: Rs. 20 Lakhs; DRAT appeal pre-deposit: 50% (reducible to not less than 25% by DRAT)
C
Minimum debt: Rs. 1 Crore; DRAT appeal pre-deposit: 50%
D
Minimum debt: Rs. 10 Lakhs; DRAT appeal pre-deposit: 25%
Question 1 of 28

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