Institutional arbitration: A turning point for NBFCs and banks in resolution of NPAs?
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Summary
Banks and Non-Banking Financial Companies (NBFCs) play a major role in propelling the nation’s economic growth. Since they deal with public money, it is essential that they recover money from defaulted loan accounts quickly so that funds can be redeployed for productive purposes. Though they have legal recovery tools that can be enforced through debt recovery tribunals, arbitration is the primary legal tool for recovery of dues in small-ticket loans, since approaching civil courts is time-consum