📝 One-liners · 65 cards
SARFAESI PART 2, ARC, Lok Adalat, DRTs, Mortgages
What does SARFAESI stand for?
SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It empowers banks and financial institutions to recover non-performing assets without court intervention.
What is the minimum NPA age for a bank to sell an asset to an ARC?
NPA must be at least 2 years old before sale to ARC.
What is an Asset Reconstruction Company (ARC) under SARFAESI?
An ARC is a company registered with the RBI under SARFAESI Act that acquires stressed financial assets (NPAs) from banks and financial institutions at a negotiated price and attempts to recover them.
What is the cash reserve requirement for ARCs at the time of acquiring financial assets?
ARCs must pay at least 15% of acquisition cost in cash.
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