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Debt Resolution

Litigation Management and its Role in NPAs

Discover how technology is transforming the legal landscape for banks dealing with non-performing assets. Our comprehensive guide explores the role of litigation management technology, streamlining NPA recovery, facilitating data-driven decisions, and automating manual processes for enhanced efficiency and success.

Learn how litigation management technology empowers banks to efficiently handle non-performing assets, streamline legal processes, and make informed, data-driven decisions for successful NPA recovery.

For banks or any other financial institution, it is difficult to go to court for any problem related to non-performing assets. Legal proceedings are slow and tedious. To curb these problems, technology is now available. Litigation management technology is specially designed from the perspective of banks and financial institutions. Through this, we automated the loan recovery process lifecycle. 

The article covers a range of topics related to NPA legal matters, including the role of the legal team in managing NPAs, the importance of effective communication with borrowers, and the legal implications of various debt resolution strategies.

What is litigation management?

Litigation management is a software tool aiding organizations in managing and tracking legal cases, including non-performing assets. This technology streamlines the entire legal process, providing a centralized platform for efficient case management, documentation, and improved decision-making. It also contains documentation, which helps an organization in a systematic way of dealing with cases. By using this system, an organization can improve the efficiency and accuracy of its litigation process, reduce the risk of human error, and make more informed decisions. Through this software, any organization can better understand legal risk, track the status of cases, and allocate resources efficiently. As this software helps to manage non-performing assets (NPA), the chances of recovering losses have increased. 

Role of litigation management technology in NPA:

The role of litigation management technology is particularly important in the context of NPA recovery. Litigation management tools can help financial institutions efficiently manage legal cases and reduce the risk of costly litigation.

Streamlining the NPA recovery process:

Litigation management technology helps streamline the NPA recovery process by automating repetitive tasks, reducing manual errors, and providing a centralized platform to manage the entire NPA recovery process. It allows a financial institution to easily track the progress of the cases and prioritize actions to maximize the recovery of the NPAs. 

Facilitating data-driven decision-making:

Using litigation management technology provides financial institutions with a wealth of data and analytics on their NPA profiles, which they can use to make informed decisions. The system can provide real-time insights into the status of NPAs, including the type of NPAs, the stage of the recovery process, and the likelihood of recovery. This data can help financial institution prioritize their NPA recovery efforts and allocate resources more effectively. 

Automation of time-consuming manual processes:

Litigation management technology can automate time-consuming manual processes such as document management and task tracking. This saves time and reduces the risk of manual errors. Additionally, the system can automate reminders and notifications, ensuring deadlines are met and actions are taken promptly. This helps improve the overall efficiency and productivity of the NPA recovery process.  

Features of Litigation management technology software

Budgeting and expenses management:

This feature allows financial institutions to manage and track their budget for NPA recovery efforts, including expenses related to legal proceedings, advertisements, and other costs.

Reminders and alerts:

This system can also send reminders and alerts for important dates and deadlines, ensuring that actions are taken on time and reducing the risk of missed opportunities.  

OTS with multi-level approval:

The one-time settlement with multi-level approval allows financial institutions to manage the OTS process organizationally and efficiently. The system facilitates the approval process at various levels, reducing manual errors and improving the overall speed of the process.  

Real-time case update:

Financial institutions can receive real-time updates on the status of their NPA cases, allowing them to stay informed and make data-driven decisions.  

Customized templates for intimation letters:

The system can provide customized templates for intimation letters, reducing the time and effort required to create such notices/letters. 

Newspaper advertisement:

The system can manage and track the newspaper advertisement process, ensuring that the advertisement is published per the schedule and the cost is within budget.  

Regular reports:

The system can generate regular reports on the NPA portfolio, including insights into the status of the cases, recovery efforts, and performance. These reports help financial institutions stay informed and make data-driven decisions. 

litigation management benefits for banks

Benefits of litigation management technology for banks and financial institutions

Case hearing date management:

Lawyers have to abide by the limitation periods; after the expiration of the limitation period, a case cannot be admitted inside the court. Similarly, in the case of NPAs, there are also limitation periods. With numerous other legal proceedings, sometimes keeping a reminder for every hearing date can be tiring. This software can help send reminders and alerts via email or text before every case in advance. It stores the information and keeps a check that a lawyer doesn’t miss any of its claims. 

Centralized case tracking:

The feature of centralized case tracking helps lawyers handle the information related to the date of hearing, case summary, previous history date, previous order, etc., with overload in the number of pending cases; it is difficult for lawyers to keep track in a centralized manner. They need all the data in one place to help them understand the matter thoroughly. LMS helps to store all the information in a repository in a centralized manner. These repositories can be easily accessible with a few clicks. 

Case expense management: 

Keeping proper track of billing and budgeting is very important. If not appropriately documented, legal professionals can mismanage the budget, leading to confusion. Litigation management technology helps keep records of all expenses incurred in a court proceeding authentically. It also generates detailed reports on costs and liabilities, which enable organizations to keep a check on finances.  

Communication and collaboration tools:

This system provides different communication and collaboration tools that help facilitate the conversation smoothly. Whether the communication is between legal teams, clients, or other stakeholders involved in the litigation process, it streams lies the process for all. As it makes communication effective, the gap between different departments is also decreasing. No one can miss necessary case details. 

Virtual files and mobile applications:

The litigation management system is also the repository of documents. Circulating documents has been a major challenge for banks and financial institutions. Litigation management technology has eased the challenge, as many users can access uploaded documents. A mobile application is also an additional feature of litigation management technology. It allows the bank’s advocate to interact with the other person through an application, making interaction more convenient. 

Recently, there’s been a high demand for litigation management technology. Every type of bank uses this technology, including RRBs, PACs, scheduled banks, or nationalized banks. With the increasing number of non-performing assets, it is tough for organizations to keep track of every borrower. This software makes it convenient for all banks to deal with legal matters. Keeping track of everything and smoothing the litigation system are the only ways of sustaining profitability for the banks.  

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by Palak Poddar

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