What is the full form of DRA in Banking?
The full form of DRA in banking is Debt Recovery Agent in banking. When it comes to credit rehabilitation and financial management, then DRAs have a very important part to play there. They are mainly hired by the banks of financial institutions for recovering the debts from defaulters. This expert follows legal and regulatory criteria to recover debt ethically. Fair and friendly debt recovery agents assist creditors and borrowers pay outstanding sums. Besides debt collection, they must negotiate, communicate, and respect the law.
What Else You Should Know About DRA?
Debt Recovery Agents obey local laws. The Recovery of Debts Due to Banks and Financial Institutions Act is used in several countries, including India. To treat debtors equitably and protect both parties, adopt these rules. Debt collectors must interact. The agent must inform the debtor of the risks of nonpayment and available remedies. Agents need negotiating abilities to arrange debt repayment. Debt Recovery Agents must discover debtors who moved or changed their contact details. Skip tracing, finding relocated people, is essential to debt collection. This work frequently involves complex databases and technology. For proper maintenance of creditor’s and bank’s financial balance, DRAs have a great responsibility.