Financial Awareness - Risk, Stability & Emerging Finance
Which of the following Acts empowers banks to recover their Non-Performing Assets without the intervention of courts?
Which of the following Acts empowers banks to recover their Non-Performing Assets without the intervention of courts?
medium Q15 of 15
Step-by-Step Solution
Step 1: Identify recovery mechanism for NPAs
SARFAESI Act allows banks to recover NPAs by enforcing security without court intervention.Step 2: Analyze options
Only SARFAESI Act specifically empowers banks for such recovery; others do not.Final Answer:
SARFAESI Act, 2002 → Option CQuick Check:
SARFAESI Act = NPA recovery without courts ✅
Quick Trick: SARFAESI = Security Enforcement for Recovery of Assets.
Common Mistakes:
- Confusing Banking Regulation Act with SARFAESI for recovery powers.
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