BANKING AFFAIRS

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: -The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act India) empowers Banks and Financial Institutions to recover their non-performing asset (NPA) loan dues without the intervention of the Court.

Detailed explanation-3: -The process under which they operate is SARFAESI Act procedure. Under the SARFAESI Act procedure, if a borrower is unable to repay his loan (this includes home loans) for a period of six months, the bank has the legal right to send a notice to him, asking him to clear the dues in 60 days.

Detailed explanation-4: -SARFAESI ( Securitization and reconstruction of financial assets and enforcement of security interest act )-It is the act that passed in the Indian parliament in the year 2002 which provides rights to banks to cover their outstanding amount of loan through the borrower assets.