Banking Term: Sarfaesi Act
- Sarfaesi Act Stands for Securisation and reconstruction of financial assets and enforcement of securities interest Act.
- It was enacted to regulate securitization and reconstruction of financial assets and enforcement of security interest created in respect of Financial Assets to enable realization of such assets.
- The SARFAESI Act provides for the manner for enforcement of security interests by a secured creditor without the intervention of a court or tribunal.
In exercise of powers conferred by SARFAESI Act, 2002, Reserve Bank of India has issued guidelines to registration, measures of asset reconstruction, prudential norms, acquisition of financial assets etc.