Meaning
This act empowers banks and financial institutions to recover secured debts efficiently from defaulting borrowers.Definition
The **Full form** is Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It allows creditors to enforce security interests without court intervention.How It Works
When a borrower defaults, the institution can issue a notice. If non-payment persists, they can take possession, manage, or sell the secured asset to recover dues.Benefits
It accelerates debt recovery for banks, helps reduce Non-Performing Assets (NPAs), and strengthens India’s financial system.Author
