Banking · DRT Jurisdiction and Fees
A bank decides to file an Original Application (OA) with the Debt Recovery Tribunal (DRT) for a total debt of Rupees 248 Lakh. Which statement correctly describes the pecuniary jurisdiction and the required fee structure as per standard norms?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Pecuniary jurisdiction is satisfied; the bank must pay a fee of 10 percent of the claimed amount.
- 2Pecuniary jurisdiction is satisfied as the debt is over Rupees 20 Lakh; the bank must pay an ad valorem fee of 1 percent of the claimed amount, subject to a maximum cap of Rupees 1,50,000/-.✓
- 3Pecuniary jurisdiction is satisfied; the bank must pay a fixed fee of Rupees 1,50,000/- regardless of the claim amount.
- 4The total debt is too high for the DRT; it must be filed with the High Court.
Correct answer
Pecuniary jurisdiction is satisfied as the debt is over Rupees 20 Lakh; the bank must pay an ad valorem fee of 1 percent of the claimed amount, subject to a maximum cap of Rupees 1,50,000/-.
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