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PRNewswire
New Delhi [India], December 4: In today's fast-paced digital era, the banking and financial services industry requires the ability to resolve financial disputes swiftly, transparently, and cost-effectively. Disputes, particularly those involving debt collections and financial recoveries, impose significant burdens on both lenders and borrowers, leading to prolonged litigation, elevated costs, and a loss of trust in the system. To address these issues, the Arbitration and Conciliation (Amendment) Bill, 2024 has been introduced and is aimed at transforming the dispute-resolution landscape in the commercial and BFSI sectors. The Bill seeks to tackle the challenges posed by India's traditionally slow dispute-resolution processes through Alternative Dispute Resolution (ADR) mechanisms. These proposed amendments aim to expedite dispute resolution, reduce associated costs, and restore confidence in the system by creating a more efficient and reliable globally accepted framework for resolving financial disputes in these critical sectors. Key Features of the Proposed Bill The Bill incorporates critical provisions to improve the arbitration framework. These features are particularly beneficial for BFSI disputes resolution. 1. Minimized Court Intervention: The Bill curtails unnecessary judicial involvement, allowing disputes to be resolved more quickly and efficiently. 2. Enhanced Procedural Efficiency: Faster arbitration processes reduce recovery costs and alleviate the burden on lenders and borrowers alike. 3. Prioritization of Resolving Disputes The provisions ensure that high-priority cases are addressed promptly, meeting the demand for swift and efficient resolutions. By adopting these measures, the Bill aims to provide a structured, fair, and transparent mechanism for resolving disputes, ensuring mutual benefits for all stakeholders. Jupiter Council for Arbitration and Mediation (JCAM) has emerged as a key player for financial dispute resolution in this evolving landscape of ADR that is rapidly becoming a preferred model across the globe. JCAM's unique institutional arbitration framework for financial disputes is tailor-made to align with the objectives of the proposed Bill. In partnership with Credgenics, the leading platform for debt collections and resolution, JCAM delivers an integrated solution that addresses the unique challenges of BFSI financial dispute resolution. JCAM's framework is designed to provide: - Cost-effective Resolutions: Affordable arbitration processes reduce the financial burden on BFSI retail lenders and borrowers. - Speedy Proceedings: Accelerated timelines for initiating, managing and concluding arbitration. - Transparency and Neutrality: A fair and impartial system that inspires trust and confidence among disputing parties. Alignment with Supreme Court Rulings Recent judgments by the Supreme Court reinforce the principles of fairness and impartiality in arbitration, making JCAM's framework even more relevant. Key highlights of these rulings include: - Prohibition of Unilateral Arbitrator Appointments: JCAM's model is inherently compliant with this mandate, offering a structured and transparent process for arbitrator appointments. Through JCAM, parties benefit from an impartial selection mechanism that upholds trust and neutrality in every dispute resolution. - Encouragement of Institutional Arbitration: Institutional frameworks, like JCAM, are recognized and encouraged for their fairness and efficiency. - Recognition of Arbitral Awards: Decisions made through arbitration are fully admissible and enforceable in judicial and execution courts, boosting their credibility. JCAM integrates these principles into its end-to-end solutions, utilizing Online Dispute Resolution (ODR) capabilities to ensure impartial and seamless arbitration processes. Customers can schedule seamless virtual hearings, access and download recordings / transcripts for completed meetings. JCAM with its user-friendly and simple interface also allows lenders to host and send legal communications and case proceedings for borrowers to respond and interact. Reflecting on these developments, Mayank Khera, Co-Founder & COO of Credgenics, highlighted the significance of the proposed Bill, "The proposed Arbitration and Conciliation (Amendment) Bill, 2024, is a major milestone for the BFSI sector. By embracing institutional arbitration and ODR platforms like JCAM, we are enabling banks and other non-banking lenders to resolve financial disputes with unmatched efficiency and transparency. The digital enablement not only reduces resolution timelines and costs but also builds trust in the dispute resolution process. At Credgenics, we are committed to providing a modern framework that aligns with such forward-looking reforms and strengthens the financial ecosystem." The Arbitration and Conciliation (Amendment) Bill, 2024 sets the stage for a transformative era in BFSI dispute resolution. By streamlining arbitration procedures and reducing reliance on courts, it promises quicker recoveries and lower litigation costs. Meanwhile, platforms like JCAM ensure that the financial dispute resolution processes remain fair, neutral, and transparent. As the BFSI sector prepares for the Bill's enactment, the collaboration between institutions like JCAM and industry leaders such as Credgenics underscores a shared commitment to building an equitable, efficient, and trustworthy financial dispute resolution system. These reforms not only address current challenges but also lay the foundation for a more robust financial ecosystem. Reference: Jupiter Council for Arbitration and Mediation (JCAM): https://jcam.co.in/Credgenics: https://www.credgenics.com/ Logo: https://mma.prnewswire.com/media/2573215/JCAM_Logo.jpgLogo: https://mma.prnewswire.com/media/1844975/5060315/Credgenics_Logo.jpg (ADVERTORIAL DISCLAIMER: The above press release has been provided by PRNewswire. ANI will not be responsible in any way for the content of the same)
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