The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), enacted by the Indian Parliament in 2002, is a landmark law. It empowers banks and financial institutions to reclaim non-performing assets (NPAs) efficiently without court or tribunal intervention. This act was introduced to address the burgeoning NPAs that were crippling…
Non Banking Financial Companies (NBFC): A Detailed Overview A Non-Banking Financial Company (NBFC) is a financial institution that provides various banking services without holding a full banking licence. Unlike traditional banks, NBFCs are restricted from accepting demand deposits, such as savings accounts and checks, from the public. These entities, also known as Non-Banking Financial Institutions…
Debt Recovery Tribunals (DRT) serve a pivotal function in reclaiming funds owed to banks and financial institutions by borrowers. These tribunals are empowered to address cases involving the recovery of non-performing assets (NPAs) as identified under the guidelines of the Reserve Bank of India (RBI). Essentially, DRTs wield the same authority as district courts and…
