Regulating Securitisation and Asset Reconstruction: A Practical Guide for Banks and FIs

BRBL, Loans and advances

The SARFAESI framework establishes how securitisation and asset reconstruction companies (ARCs) are licensed, governed, and supervised, and how financial assets are acquired, managed, and resolved, with clear roles for obligors, investors, and the Reserve Bank of India. This article synthesizes the operational touchpoints a banking audience needs: licensing and cancellation, asset acquisition mechanics, obligor notices…

Understanding the SARFAESI Act, 2002: Constitutionality, Key Definitions, and Framework for Asset Recovery in Indian Banking

BRBL, Loans and advances

The SARFAESI Act, 2002 is a cornerstone law empowering banks and financial institutions in India to recover non-performing assets swiftly, primarily by allowing the enforcement of security interests without prior court intervention. Indian courts have affirmed the constitutional validity of the Act, ensuring its mechanisms are both effective and just. Preamble and Overview The full…

Supreme Court on section 14(1) of the SARFAESI ACT: Magistrates can appoint an advocate commissioner to assist them in in execution of the order passed by them

Legal and Regulatory aspects of banking

Supreme Court while delivering judgment [NKGSB Cooperative Bank Limited vs Subir Chakravarty | SLP (C) 30240 OF 2019 | 25 February 2022    Coram: Justices AM Khanwilkar and Justice CT Ravikumar] said that the District Magistrate or the Chief Metropolitan Magistrate can appoint an advocate commissioner to assist him/her in the execution of the order passed…

SC rules SARFAESI act applies to cooperative banks as well

BRBL, Legal and Regulatory aspects of banking

The Supreme Court on Tuesday (May 05, 2020) held that cooperative banks come under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Act 2002 (SARFAESI Act). The SARFAESI Act law empowers lenders to seize and sell defaulters’ assets. A five members constitution bench of Justices Arun Mishra, Indira Banerjee, Vineet Saran, M.R.…

Secured assets possessed under the SARFAESI Act, shall be displayed by creditors: RBI

BRBL, Law related to collateral-securities

RBI on Monday asked all the Regulated Entities (REs) of the Reserve Bank to display information on secured assets possessed under the SARFAESI Act, 2002. “As a part of the move towards greater transparency, it has been decided that the Regulated Entities (REs) of the Reserve Bank which are secured creditors as per the Securitisation…

MSMED Act, 2006 and Revised MSME Classification Norms (2025 Update)

BRBL, Loans and advances

The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is a foundational legislation in India that aims to promote, develop, and enhance the competitiveness of micro, small and medium enterprises (MSMEs). For banking professionals, understanding its regulatory framework is crucial to effectively support MSMEs and comply with mandated standards. Objectives and Scope The MSMED…

Understanding MSME Memorandum and Registration process

BRBL, Loans and advances

The Memorandum of Micro, Small and Medium Enterprises refers to the formal self-declaration process introduced for MSME registration, enabling enterprises to receive recognition and access government benefits. Previously known as the Entrepreneur Memorandum (EM-II) and Udyog Aadhaar Memorandum (UAM), this system is now replaced by the Udyam Registration—a fully online, self-declaration based procedure on the…

Understanding Coverage and updated definition of MSMED Act 2006

BRBL, Loans and advances

In India, the coverage of MSME is vast, encompassing businesses in both the manufacturing and services sectors that meet specific criteria for investment in plant, machinery, or equipment and annual turnover. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides a comprehensive regulatory framework for the promotion, development, and competitiveness of MSMEs in…