The complete Full form for DRA in banking is Debt Reconstruction Agent. If it is about financial management and rehabilitation of credit and financial management, DRAs play a significant role to play. They are mostly employed by banks and financial institutions to collect loans of defaulters. This expert is able to meet regulations and legal guidelines to collect debt in a fair and ethical manner. Honest and courteous debt recovery professionals help the borrowers and creditors pay their the outstanding amount. Apart from the collection of debt, they have to bargain, communicate, and observe the law.
What else do you need to know About DRA?
Debt Recovery Agents obey local laws. This law, the Recovery of Debts Due to Banks and Financial Institutions Act is applicable in many countries as well as India. To be fair to debtors and to protect both sides, follow these guidelines. The debt collectors need to cooperate. Agents must inform the debtor about the consequences of non-payment and possible remedies. Agents require negotiation skills to help arrange repayment. Debt Recovery Agents need to find the debtors who changed or moved their contact information. The process of tracing the skips, or finding those who moved, is crucial for debt collection. The process is often complicated databases and technological. In order to ensure that the balance of bank and creditor’s accounts, DRAs have a great obligation.
