The Role Of The SARFAESI Act In Strengthening India's Financial Stability: Challenges And Opportunities
- IJLLR Journal
- Mar 15
- 1 min read
Hanna Dominic, LLM (Corporate and Commercial Law), Christ Deemed to be University, Bangalore
ABSTRACT
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, is a pivotal piece of legislation in India's financial landscape. Enacted to address the burgeoning problem of non-performing assets (NPAs) in the banking sector, the SARFAESI Act empowers banks and financial institutions to recover their dues without the intervention of courts. This paper explores the role of the SARFAESI Act in strengthening India's financial stability, examining its provisions, challenges, and opportunities. The study delves into the historical context of the Act, its operational framework, and its impact on the banking sector. Additionally, the paper identifies the challenges faced in its implementation and suggests potential opportunities for enhancing its effectiveness.
Keywords: SARFAESI Act, Non-Performing Assets (NPAs), Financial Stability, Debt Recovery, Banking Sector, Enforcement of Security Interest.
