Volume : VIII, Issue : IV, April - 2019

An Overview of SARFAESI Act and Its Impact on NPA

Greeshma Francis

Abstract :

An asset becomes non–performing when it ceases to generate income for the bank. In India, a Non–Performing Asset (NPA) is oadly defined as one with interest or principal repayment installment unpaid for more than 90 days Prior to 1993, banks had to take recourse to the long legal route against defaulting borrowers, beginning with the filing of claims in the courts. A lot of time was therefore spent in the judicial process before banks could have any chance of recovery on their loans To speed up the process of recovery from NPAs, The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) Act was enacted in 2002 for regulation of securitization and reconstruction of financial assets and enforcement of security interest by secured creditors. This paper attempts to study impact of sarfasies act on NPA

Article: Download PDF    DOI : https://www.doi.org/10.36106/paripex  

Cite This Article:

AN OVERVIEW OF SARFAESI ACT AND ITS IMPACT ON NPA, Greeshma Francis PARIPEX‾INDIAN JOURNAL OF RESEARCH : Volume-8 | Issue-4 | April-2019

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