RECOVERY OF LOANS & SARFAESI
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
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, enacted in 2002 to enable banks to recover NPAs without court intervention.
What is the full form of RDDBFI Act?
Recovery of Debts Due to Banks and Financial Institutions Act
Under SARFAESI Act, what is the minimum amount of outstanding dues required for a bank to invoke its provisions?
The secured debt must be above Rs. 1 lakh and the account must be classified as a Non-Performing Asset (NPA) for SARFAESI provisions to be invoked.
In which year was the SARFAESI Act enacted?
2002
How many days' notice must a secured creditor serve on the borrower before taking possession of secured assets under SARFAESI?
A secured creditor must issue a demand notice of 60 days, giving the borrower an opportunity to repay the dues before enforcement action is initiated.
What is the minimum loan amount for DRT jurisdiction under RDDBFI Act?
Rupees twenty lakhs
Which regulatory authority oversees Asset Reconstruction Companies (ARCs) in India?
The Reserve Bank of India (RBI) regulates and supervises Asset Reconstruction Companies under the SARFAESI Act, 2002.
What type of assets cannot be seized under the SARFAESI Act?
Agricultural land is exempt from SARFAESI seizure
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