Multiple choice

The SARFAESI Act provisions are applicable in which of the following cases?

  1. Creation of security interest in any vessel

  2. Creation of security interest in any aircraft

  3. Creation of security interest in land

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The full form of SARFAESI Act is Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Banks utilise this act as an effective tool for bad loans (NPA) recovery. It is possible where non-performing assets are backed by securities charged to the bank by way of hypothecation or mortgage or assignment. Thus, option 4 is the correct answer.

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