CAIIB · BRBL

SARFAESI

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

What does SARFAESI stand for?

A

SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, enacted in 2002.

Q

What is the full form of CERSAI?

A

Central Registry of Securitisation Asset Reconstruction and Security Interest

Q

In which year was the SARFAESI Act enacted?

A

The SARFAESI Act was enacted in 2002 and came into force on 21 June 2002.

Q

Under SARFAESI, within how many days can a borrower raise objections to the 60-day notice?

A

15 days from receipt of the demand notice

Q

What is the primary objective of the SARFAESI Act?

A

The primary objective is to enable banks and financial institutions to recover non-performing assets (NPAs) without the intervention of courts by enforcing security interests directly.

Q

Which Section of SARFAESI empowers banks to issue demand notices to defaulters?

A

Section 13(2) of the SARFAESI Act 2002

Q

Which authority regulates Asset Reconstruction Companies (ARCs) under SARFAESI?

A

The Reserve Bank of India (RBI) regulates and supervises Asset Reconstruction Companies under the SARFAESI Act.

Q

What is the time limit for filing an application before DRT under SARFAESI?

A

45 days from the date of possession or action taken

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