Penalties and Appeals under RBI Directions: Offences, Cognizance, Adjudication, and Appellate Review
Penalties for non-compliance with directions issued by the Reserve Bank of India encompass monetary sanctions, adjudication, and appellate remedies under the Banking Regulation Act, 1949, the RBI Act, 1934, and the Foreign Exchange Management Act, 1999, depending on the regulated entity and contravention type. In practice, RBI imposes calibrated penalties for supervisory non-compliance, while contraventions…
Read article Miscellaneous Provisions under SARFAESI: scope limits, protections, and rule-making in one place
The SARFAESI Act contains an essential “miscellaneous” toolkit that clarifies when the Act does not apply, who may be exempted, what protections exist for good-faith actions, how company offences are treated, which forums have jurisdiction, how the Act overrides other laws, applicable limitation norms, and how the Central Government can frame rules and amend related…
Read article Central Registry under SARFAESI: a practical guide to CERSAI for lenders, borrowers, and investors
The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is the nationwide database that records securitisation, reconstruction, and security interest transactions to prevent multiple financing and improve transparency in credit markets. It enables time-stamped filings, public search, and statutory recognition of entries relating to charges on movable and immovable assets, thereby…
Read article Enforcement of Security Interest under SARFAESI: A practical guide for bankers and borrowers
The SARFAESI Act provides a clear, time-bound pathway for secured creditors to enforce security interests without initial court intervention, while preserving borrower remedies and safeguards at each step. This guide explains the notice process, possession and management takeover, magistrate assistance, appeals, and borrower rights in a concise, practitioner-friendly format. When enforcement starts Core enforcement measures…
Read article Regulating ARCs under SARFAESI: A practical guide for banks, lenders, and investors
India’s SARFAESI Act sets a clear, end-to-end playbook for how Asset Reconstruction Companies (ARCs) are registered, how they acquire stressed assets, how obligors are notified, how security receipts are issued, what measures ARCs can deploy to resolve assets, how disputes are addressed, and the supervisory powers available to the Reserve Bank of India (RBI) to…
Regulating Securitisation and Asset Reconstruction: A Practical Guide for Banks and FIs
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…
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