SARFAESI Act

The SARFAESI Act, or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, was enacted in India in 2002. It allows banks and financial institutions to take possession of assets (like property) if borrowers default on loans. This process is intended to help recover dues without lengthy court procedures. The Act also enables the restructuring of loans and asset securitization, making it easier for lenders to manage non-performing assets. Ultimately, it aims to improve the financial health of banks and reduce credit risk in the economy.