- Litigation management software help banks in the NPA recovery process as they issue notices to the defaulters.
- Litigation management tools record all the expenses incurred by the bank and validate it against the pre-approved budget of the bank.
- NPA recovery cases usually go on for a long time and contain a lot of data, such as the defaulter's information, the hearing dates, as well as the data, from different hearings of the case.
Non-performing assets (NPA) are loans or advances that have remained unpaid to the financial institutions beyond their due dates. NPA is a major point of concern for any bank because it affects their cash flow, disrupts their budget, and reduces their earnings. Although the duration differs for different loan types, defaulting payment for 90 days or more is usually frowned upon. In order to prevent the borrowers from defaulting on repayment, banks and other financial institutions implement measures such as litigation management system (LMS).
Litigation management software is a tool which automates the recovery process by accessing the legal information of the borrowers and managing the legal proceedings in banks. The features and ways in which litigation management tools help banks recover NPA are discussed below.
Litigation management software help banks in the NPA recovery process as they issue notices to the defaulters.
Court Hearing Reminders
Litigation management software store all the important dates regarding the NPA case and notify the lawyers in advance through emails and texts about the court hearing dates. This software makes the entire process seamless for the banks, as well as the lawyers.
NPA cases are not only tedious but are also expensive. There are various costs attached to the recovery process, such as the lawyer’s fee, the cost of sending out notices, costs associated with the court, and so on. These can cause confusion. However, litigation management tools record all the expenses incurred by the bank and validate it against the pre-approved budget of the bank. It also creates expense reports.
NPA recovery cases usually go on for a long time and contain a lot of data, such as the defaulter’s information, the hearing dates, as well as the data, from different hearings of the case. This data can become difficult to handle for any law attorney. However, the litigation management tool manages all the data and makes the entire process smooth.
Litigation management software is a great tool for report generation. It allows the banks and lawyers to access detailed reports on expenses and case summary on-the-go.
Ease of Use
Litigation management systems is easy to use. It can be accessed from any place and through any device. It allows the lawyers to have access to all the relevant information at their fingertips.
Litigation management softwares have become an integral part in managing the non-performing asset recovery cases. Not only do they streamline the process for the lawyers, but also keep the financial institutions updated regarding the case.