SARFAESI Act 2002 also known as Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 was brought in by the authorities to give financial houses power to assess asset quality in different ways to identify Non Performing Assets. It also allows banks and financial institutions in India to auction commercial or residential properties to make loan recovery, if required. Now that we have fair idea of what is SARFAESI Act 2002, let us look at some other details.
Objectives of SARFAESI actAlthough, there are many things which are covered in this act but the major objectives of the SARFAESI Act are:
Regulation of securitization and reconstruction of financial assets
Enforcement of the security interest for
To deal with matters connected therewith or incidental thereto
Rapid and efficient recovery of Non performing assets of banks and financial institutions
To allow banks and financial institutions to auction properties for the purpose of loan recovery
The three processes followed to recover NPAs under SARFAESI Act are:
Securitization
Asset Reconstruction
Security enforcement without court intervention
I hope now you understand a bit about what is SARFAESI Act 2002.
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What is SARFAESI act 2002?
Purnima
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2021-11-11T12:52:59+00:00 2021-11-11T16:07:41+00:00Comment
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