Banking Awareness - Banking Acts, Reforms & Risk Management
Which of the following best describes the primary objective of the SARFAESI Act?
Which of the following best describes the primary objective of the SARFAESI Act?
medium Q15 of 15
Step-by-Step Solution
Step 1: Recall why SARFAESI was introduced
The Act was enacted to address rising NPAs.Step 2: Link objective with recovery mechanism
It enables enforcement of security interest for faster recovery.Final Answer:
Speedy recovery of NPAs by enforcing security interest → Option AQuick Check:
NPAs + secured assets = SARFAESI objective ✅
Quick Trick: Whenever NPAs and secured recovery appear together, think SARFAESI.
Common Mistakes:
MISTAKES- Confusing SARFAESI with deposit insurance or rate regulation laws.
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