Important Laws Relating to Recovery of Dues
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
Under the RBI Framework for Resolution of Stressed Assets for MSMEs, what is the maximum resolution period permitted before invoking IBC?
The maximum permitted resolution period is 180 days from the date of default, within which the bank must finalise a resolution plan.
Under SARFAESI Act 2002, what must be the status of an account before a secured creditor can issue a Section 13(2) demand notice?
The account must be classified as Non-Performing Asset (NPA)
What is the central tool used under the RBI Framework for Resolution of Stressed Assets for MSMEs?
The central tool is the resolution plan, which the bank must finalise within 180 days from default before invoking IBC.
Under SARFAESI Act Section 13(2), how many days does a borrower have from the date of notice to repay the outstanding dues?
60 days
What happens if a bank fails to implement a resolution plan for a stressed MSME account within the stipulated 180-day period?
If the resolution plan is not finalised within 180 days, the bank must invoke the Insolvency and Bankruptcy Code (IBC) proceedings.
Under SARFAESI Act Section 13(3A), within how many days of receiving a Section 13(2) notice can a borrower make a representation or objection to the bank?
Within 60 days (during the notice period)
Which legislation provides the primary framework for insolvency resolution of MSMEs that fail to resolve stress within the RBI-prescribed period?
The Insolvency and Bankruptcy Code (IBC) is invoked when the MSME resolution plan is not finalised within the 180-day window.
Under SARFAESI Act Section 13(3A), within how many days must the secured creditor consider and respond to a borrower's representation or objection?
15 days
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