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This act as an effective tool for bad loans recovery
  • a)
    RBI Amendment Act. 2006
  • b)
    The Banking Laws Bill. 2011
  • c)
    RRB Act, 1976
  • d)
    Sarfaesi Act, 2002
  • e)
    None of the above
Correct answer is option 'D'. Can you explain this answer?
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This act as an effective tool for bad loans recoverya)RBI Amendment Ac...
The correct answer is D) Sarfaesi Act, 2002. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 is considered an effective tool for bad loan recovery in India. The act empowers banks and financial institutions to take possession of collateral assets and sell them to recover outstanding loans in the event of default by the borrower. It provides a legal framework for faster and more efficient resolution of non-performing assets (NPAs) and enables lenders to enforce their security interests without the intervention of the court. The Sarfaesi Act has been instrumental in improving the recovery of bad loans and reducing the burden of NPAs on banks and financial institutions.
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