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Providing financial assistance to the needy is an essential function of a banker. By meeting
the financial requirements of various segments of the society, banks contribute to the
economic development of our nation. Banks and financial institutions have heavily financed
industries both corporate and individual. Large sums remain unrecovered and the normal
process of recovery of debts through the courts is lengthy. Institutions face considerable
difficulties in recovery of dues and enforcement of securities charged to them due to delay in
legal processes. A significant portion of their funds are thus blocked in unproductive assets,
the values of which deteriorate over the period of time. Banks and financial institutions also
spend substantial amounts on legal charges, which add to their overheads Recovery of debt is
a difficult task and involves a lengthy process. The recovery process begins with issuing
notices to the borrowers and ends with sale of property and recovery of debt. Recovery of
bank dues is attained by legal and non-legal measures. The legal measures include recovery
of debt through DRTs, SARFAESI Act

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