Banking · SARFAESI Act
Under the SARFAESI Act, what is the initial formal step a secured creditor must take to enforce security interest for recovering dues from a borrower?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Appoint a third-party collection agency to take manual possession.
- 2Sell the collateral immediately through a public auction.
- 3Issue a 60-day demand notice to the borrower after classification as NPA.✓
- 4File a civil suit in a district court.
Correct answer
Issue a 60-day demand notice to the borrower after classification as NPA.
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