Sarfaesi Act, 2002
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.
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Free sample — 8 of 66 rapid-fire Q&A cards.
What does SARFAESI stand for?
SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Under SARFAESI Act, which section empowers secured creditors to issue a notice to borrowers?
Section 13(2) empowers secured creditors to issue demand notice.
What is the primary objective of the SARFAESI Act, 2002?
The primary objective is to enable banks and financial institutions to recover non-performing assets (NPAs) without court intervention by enforcing security interests.
What is the full form of DRT as used under the SARFAESI Act?
Debt Recovery Tribunal.
Which authority regulates Asset Reconstruction Companies (ARCs) under the SARFAESI Act?
The Reserve Bank of India (RBI) regulates and grants registration to Asset Reconstruction Companies under the SARFAESI Act.
Under SARFAESI, what is the full form of DRAT?
Debt Recovery Appellate Tribunal.
What is the minimum NPA threshold for invoking SARFAESI Act provisions?
A secured creditor can invoke SARFAESI provisions when the outstanding dues are more than Rs. 1 lakh and the account is classified as NPA.
What is the minimum security interest value for invoking SARFAESI Act?
The secured debt must be above Rs. 1 lakh.
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