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The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 gives financial institutions the power to enforce security interests in assets without going to court if a borrower defaults on a loan. The act's goal is to help banks reduce their non-performing assets (NPAs) through recovery and reconstruction. The act applies to secured loans, such as mortgages, pledges, and hypothecations, but not unsecured assets. In the case of secured loans, banks can seize a borrower's property without a court order, except for agricultural land. However, a court order is required if the security is fraudulent or invalid. For unsecured assets, banks must file a civil case against the borrower in court. The SARFAESI Act also gives banks the power to "seize and desist". If a borrower defaults on a loan and their account is classified as an NPA, the bank can send a written notice to the borrower demanding repayment within 60 days. If the borrower doesn't comply, the bank can take possession of the loan security. The SARFAESI Act also gives the Reserve Bank of India the authority to register and regulate Asset Reconstruction Companies (ARCs). #indianlaw #kannada #law #criminallaw #act #court #bank #loan #securitieslaw #securities #asset #account #invalid #land #institutions #power #enforce #goal #NPA #notice Recent Video :- • ಅತಿಕ್ರಮ ಪ್ರವೇಶ: ತಿಳಿಯಿರಿ ಮತ್ತು ತಪ್ಪಿಸಿ || ...