Context
Banks have invoked the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act against telecom infrastructure provider GTL to recover their pending dues.
Analysis
What is it?
Elements of the SARFAESI Act:
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Need of the Act
What are the powers of the banks under the act?
How this act is beneficial?
Shortcomings of the Act |
Required measures |
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Conclusion
SARFAESI Act provides stability and sustainability to the financial institutions and improves the credit guarantee of the creditors. The issues related to the act regarding complexities of dual regulation and ARCs should be resolved in order to mobile the public funds for better developmental process. Apart from the legal measures banks and financial institutions need to be follow the guidelines under Basel norms and central bank to reduce the share of NPAs and increase their credibility and profitability.
Verifying, please be patient.