To make it simpler for banks and other financial institutions to collect debts from their clients, debt recovery tribunals were established. For different debt collection agencies, this might not be helpful. DRTs were established following the 1993 enactment of the Recovery of Debts Due to Banks and Financial Institutions Act (RDBBFI). Instances of DRT orders are appealed to the Debts Recovery Appellate Tribunal (DRAT). DRTs may take cases from banks for challenged debts that total more than Rs 10 lakhs. Currently, there are 33 DRTs and 5 DRATs operating across the nation. Six additional DRTs were created by the government in 2014 to hasten the adjudication of disputes involving loans.

Debt Recovery Tribunals (DRTs) were able to handle a large number of cases swiftly in the early stages in comparison to conventional court procedures. The Debt Recovery Tribunals (DRTs) have had an influence on the recovery front, but in recent months, a number of issues with their performance in the face of rising NPA volumes have come to light. Due to inadequate infrastructure and a shortage of Debt Recovery Tribunals, they are unable to handle the rising number of conflicts (DRTs).

The most critical issue, which is equally crucial for each debt collection company using DRTs, is the delayed resolution procedure (settling debts and finding an end to defaults). Similar to many other debt recovery procedures, the Debt Recovery Tribunals (DRTs) take a while to settle open issues. There were around 93000 cases outstanding before all DRTs nationwide at the end of 2016. Under the previous law, it took 4.3 years on average in India to resolve insolvency, more than twice as long as it did in China, according to the World Bank. Similar to this, India's average recoveries were only 25.7 cents for every $1. This is one of the weakest economies compared to others.