SERFAESI ACT PUTS BANKS ON FAST TRACK TO DEBT RECOVERY
Banks have been able to recover over 41% of the bad debts for which proceedings were initiated
in 2006-07 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SERFAESI) Act. The Act has been responsible for the bulk of the bad loan recovery in the previous fiscal, helping banks improve ratio of Non Performing Assets (NPAs) to
total assets. The SERFAESI Act 2002 has allowed banks to attach defaulters’ properties after giving 60 days’ notice. Although legal issues have cropped up regarding attaching and selling defaulters’
properties, the threat of dispossession has propelled many borrowers to pay up.
in 2006-07 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SERFAESI) Act. The Act has been responsible for the bulk of the bad loan recovery in the previous fiscal, helping banks improve ratio of Non Performing Assets (NPAs) to
total assets. The SERFAESI Act 2002 has allowed banks to attach defaulters’ properties after giving 60 days’ notice. Although legal issues have cropped up regarding attaching and selling defaulters’
properties, the threat of dispossession has propelled many borrowers to pay up.
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