- SARFAESI Act stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002.
- It empowers banks and financial institutions to recover defaulted loans.
- It allows them to take possession of securities and sell them.
- This can be done without the intervention of the court.
- It aims to speed up recovery of defaulting loans.
- It helps reduce mounting levels of non-performing assets (NPAs).