JAIIB · PPB

SARFAESI

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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, 2002.

Q

What is the full form of NPA in the context of SARFAESI?

A

Non-Performing Asset

Q

In which year was the SARFAESI Act enacted?

A

The SARFAESI Act was enacted in the year 2002.

Q

Under SARFAESI, what is the minimum loan amount threshold for action?

A

Rupees one lakh outstanding dues

Q

What is the primary objective of the SARFAESI Act?

A

The primary objective is to empower banks and financial institutions to recover non-performing assets (NPAs) without court intervention by enforcing security interests.

Q

Which court handles disputes arising from SARFAESI enforcement actions?

A

Debt Recovery Tribunal (DRT)

Q

What minimum amount of outstanding dues is required for invoking SARFAESI?

A

The outstanding dues must be more than Rs. 1 lakh for a bank or financial institution to invoke SARFAESI provisions.

Q

What is the appeal tribunal above DRT under the SARFAESI framework?

A

Debt Recovery Appellate Tribunal (DRAT)

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