Banking Awareness - Banking Acts, Reforms & Risk Management
Which type of asset is essential for a bank to take action under the SARFAESI Act?
Which type of asset is essential for a bank to take action under the SARFAESI Act?
easy Q2 of 15
Step-by-Step Solution
Step 1: Recall the scope of SARFAESI
The Act applies only when a loan is backed by security.Step 2: Match the requirement with options
Only secured assets allow banks to enforce recovery.Final Answer:
Secured assets → Option BQuick Check:
No security means SARFAESI cannot be applied ✅
Quick Trick: SARFAESI = Security interest enforcement.
Common Mistakes:
MISTAKES- Assuming unsecured loans can also be recovered under SARFAESI.
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