[Solved] Consider the following statements regarding the SARFAESI Act: Statement 1:... Which of the above statements is/are correct? | Banking Awareness

Banking Awareness - Banking Acts, Reforms & Risk Management

Consider the following statements regarding the SARFAESI Act: Statement 1: SARFAESI Act allows banks to enforce security interest without court intervention. Statement 2: SARFAESI Act is applicable only to unsecured loans. Which of the above statements is/are correct?

AOnly Statement 2 is correct

BBoth Statement 1 and Statement 2 are correct

CNeither Statement 1 nor Statement 2 is correct

DOnly Statement 1 is correct

Step-by-Step Solution

Step 1: Check Statement 1
SARFAESI allows banks to seize secured assets without court intervention.
Step 2: Check Statement 2
SARFAESI applies to secured loans, not unsecured loans.
Final Answer:
Only Statement 1 is correct → Option D
Quick Check:
Secured asset enforcement without court = SARFAESI ✅

Quick Trick: SARFAESI = secured loans + no court.

Common Mistakes:

MISTAKES

Assuming SARFAESI applies to unsecured loans.

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Which of the above statements is/are correct?

Step 1: Check Statement 1

Step 2: Check Statement 2

Final Answer:

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