What is the Full Form of DRA in Banking?

The full form of DRA in Banking is Debt Recovery Agents. The debt recovery agents are the agents who are appointed by the banks and other debt collection agencies to act as their agents and make calls or visit debtors to collect payments or due bills without having to violate the regulations implemented by the RBI.

Functions of debt recovery agents:

They play a crucial role in recovering the overdue loans of banks and in managing the non-performing assets of banks. The DRAs contact the borrowers to remind them of the overdue payments. They negotiate the repayment plans and loan settlements with the borrowers. The DRAs initiate the legal proceedings against the defaulters if necessary. They also repossess collaterals in the case of secured bank loans.

Documents and reports maintained by DRA:

The DRAs have to maintain accurate records of all their interactions with their borrowers. They also prepare reports on the status of the recovery efforts. They also ensure compliance with the legal and regulatory requirements of the bank. They will also co-ordinate with the legal terms to initiate legal action against their defaulters. They will also represent the bank in court cases related to the loan recovery process.