What is RRC Full Form in Banking?
The RRC full form in Banking is a Revenue Recovery Certificate. A Revenue Recovery Certificate is a legal document provided by banks or financial institutions that recover unpaid debts from borrowers who have not made loan payments dues. In case a borrower defaults on his/her loan repayment, an institution like India’s Debt Recovery Tribunal may file a case against him or her with the bank so as to recover the remaining amount.
Issuance of RRC:
On approval, the authority provides the bank with a Revenue Recovery Certificate. This allows the bank to start recovering its debts from the assets of the borrower in question. The RRC also empowers it to engage in litigation so that it can attach and sell the movable and immovable property of the borrower with a view to recouping arrears. This process is supervised by an agency whose role is to ensure that recovery is within the confines of law.
The legal framework of RRC in banking:
RRC being issued and employed is usually regulated by country-specific acts as well as regulations, such as those included in the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act published within India. An important instrument utilized by banks in managing their non-performing assets. This helps to reduce losses from loans that have not been paid off while ensuring that there are no financial disruptions.
