SARFAESI ACT

Service Description

Without the involvement of the courts, the SARFAESI Act enables Indian banks and financial organizations to sell or auction the assets and property of loan defaulters. With the intention of enabling banks to recover Non-Performing Assets (NPAs) without the need for judicial action, the SARFAESI Act, also known as the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002, was created. A Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) is also established by the SARFAESI Act. CERSAI is a central register of security interests that is entirely online. CERSAI was developed to prevent frauds in which the same assets are used as collateral for several loans obtained from various banks.