economics medium True/False

The SARFAESI Act, 2002 allows banks to auction secured assets without the intervention of a court to recover non-performing assets (NPAs).

  1. True
  2. False

Answer: True

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act empowers banks and financial institutions to enforce their security interest directly. This bypasses the lengthy judicial process, enabling faster recovery of bad loans from defaulting borrowers.

Topic Banking - NPA Resolution
Exam Relevance Banking, SSC, UPSC
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