Through the bank the Legal action is considered as final resort to improve debts. Actually in willful default cases, siphoning of funds and diversion legal actions were the final remedies (Sarat Chandra Dhal, 2003).

DTR (Debt Recovery Tribunals) Establishment in the Debts recovery because of 1993 Financial Institutions Act and the Banks.  Rs. 10 lakhs approaches for recovery and earlier banks can progress DTR. Debt Recovery Appellate Tribunal entertained that except debt at 75% in argument is deposited, no demand over DTR’s instructions is entertained.

Borrowers special investigate audits

The banks of a country must have the power in order to process the special investigation audit of capacity debtors. These debtors are those who drain off funds and make no fraud of banks.  This will be the measure for stream of debtors and improve the repayment methods for loans. These audits are very much useful in debtor’s investigation.

The Bench Marking

The concept of bench marking is very much required in several particular banking sectors. This will work with various parameters. There are different types of bench marking as internal, national and international wide. The practical experiences in private banking sectors will be taken as measures for the banks in people sector. Here the recognition of a bench mark will be of 90 days duration as the NPA is an international bench mark. This has been announced by RBI from March 31, 2004. NPA is an international bench mark which was recognized and prescribed (Mr. P.K. Kaul, 2008).