CURRENT AFFAIRS

Detailed explanation-1: -(1) This Act may be called the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (2) It extends to the whole of India.

Detailed explanation-2: -The SARFAESI Act full form is – “Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act”. The SARFAESI Act allows banks and other financial institutions for auctioning commercial or residential properties to recover a loan when a borrower fails to repay the loan amount.

Detailed explanation-3: -The Securitisation And Reconstruction Of Financial Assets Andenforcement Of Security Interest Act, 2002. ACT NO. 54 OF 2002 [ 17th December, 2002.] An Act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith or incidental thereto.

Detailed explanation-4: -Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (“SARFAESI Act” or “Act”) provides for judicial assistance to creditors in enforcing their security interest as envisaged under section 13 of the Act.

Detailed explanation-5: -SARFAESI Act i.e The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002 is a legislative act passed by the parliament of India in the year 2002 to empower lenders which includes banks and other financial institutions to recover bad loans efficiently.