New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Under which Act is the legal framework for the recovery

    of debts by banks and financial institutions governed?
    A Reserve Bank of India Act, 1934 Correct Answer Incorrect Answer
    B Banking Regulation Act, 1949 Correct Answer Incorrect Answer
    C Negotiable Instruments Act, 1881 Correct Answer Incorrect Answer
    D Securities and Exchange Board of India Act, 1992 Correct Answer Incorrect Answer
    E Recovery of Debts Due to Banks and Financial Institutions Act, 1993 Correct Answer Incorrect Answer

    Solution

    the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 governs the recovery of debts by banks and financial institutions. This statute empowers banks and financial institutions to recover debts due to them by initiating legal proceedings before the Debt Recovery Tribunals. The Act provides a specialized mechanism for the expeditious adjudication and enforcement of debt recovery matters, ensuring timely resolution of disputes between banks/financial institutions and their borrowers.

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