BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Recovering Loans
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Increasing Deposits
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Transparent appointment of Directors
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Reducing Corruptions and Scams
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Detailed explanation-1: -SARFAESI Act or Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was formulated with an intent to empower banks to recover Non-Performing Assets (NPAs) without the intervention of a court.
Detailed explanation-2: -Objectives of SARFAESI Act, 2002 Efficient or rapid recovery of non-performing assets (NPAs) of the banks and FIs. Allows banks and financial institutions to auction properties (say, commercial/residential) when the borrower fails to repay their loans.
Detailed explanation-3: -SARFAESI was created to allow banks and financial institutions to auction properties (residential and commercial) if the borrowers fail to repay the loans. Also, it enables banks to recover their Non-Performing Assets (NPAs) without the intervention of courts. In this article, we look at the SARFAESI Act in detail.
Detailed explanation-4: -The main aim of the Securitization act is to make available the enforcement of security interest which is to take possession of the assets that have been given as security for the loan.