Banking Awareness Based on SARFAESI | Daily Banking Awareness Quiz

Banking Awareness Based on SARFAESI  | Daily Banking Awareness Quiz

Banking awareness is the most important subject in the mains examinations of bank and insurance exams. SARFAESI is a very vital topic of the Banking awareness section. SARFAESI is a very scoring topic. We are providing SARFAESI quiz based on the banking awareness syllabus. This international Banking awareness quiz provided on our website can be helpful for different exams such as IBPS PO, SBI PO, RRB PO, IBPS clerk, SBI clerk. This SARFAESI awareness quiz on our website comes with analysis and explanation highlighting important areas of Banking awareness.

Q1. In which year SARFAESI Act has been passed?
(a) 2005
(b) 2004
(c) 2002
(d) 2003
(e) 2006

Answer & Explanation
Ans.1.(c)
Exp. The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (also known as the SARFAESI Act) is an Indian law. It allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans.

Q2. Which of the following is not a condition that is considered by the RBI in case of application for registration or carrying on business by an Asset Reconstruction Company (ARC)?
(a) That the ARC has not incurred losses in any of the three preceding financial years
(b) That the directors of ARC have not entered into related party transactions
(c) That the directors of ARC have adequate professional experience in matters related to finance, securitization and re-construction
(d) That a sponsor of an ARC is a fit and proper person in accordance with the criteria issued by RBI
(e) None of these

Answer & Explanation
Ans.2.(b)
Exp.

Q3. Which of the following is not an essential ingredient to initiate action for enforcement of security under this act?
(a) The security interest must be at least Rs. 20,000
(b) The account must be classified as Non-Performing Asset
(c) There must be a default in repayment of secured debt or installment thereof
(d) There must be a security agreement in which borrower is under liability of the secured creditor
(e) None of these

Answer & Explanation
Ans.3.(a)
Exp.

Q4. Taking over the management of business of a borrower by a secured creditor falls under:
(a) Section 13(4)(b)
(b) Section 12(4)(b)
(c) Section 13(4)(a)
(d) Section 13(4)(c)
(e) Section 14(4)(b)

Answer & Explanation
Ans.4.(a)
Exp.

Q5. Which of the following does not fall within the jurisdiction for filing an application by any person aggrieved by any measure taken under Section 13(4) by secured creditors?
(a) Where the borrower resides
(b) Where the branch or any other office of a bank or financial institution is maintaining an account in which debt claimed is outstanding for the time being
(c) Where the secured asset is located
(d) Where the cause of action arises, wholly or in part
(e) None of these

Answer & Explanation
Ans.5.(a)
Exp.

Q6.  What is the time limit within which the Debt Recovery Tribunal must dispose of application filed under Section 17 with respect to any person aggrieved by measures taken by the secured creditors?
(a) Within 120 days of such application and the extension being not more than 6 months
(b) Within 90 days of such application and the extension being not more than 4 months
(c) Within 30 days of such application and the extension being not more than 2 months
(d) Within 60 days of such application and the extension being not more than 4 months
(e) None of the Above

Answer & Explanation
Ans.6.(d)
Exp.

Q7. What is the time period for the validity of notice of caveat?
(a) 30 days from the date of lodgement
(b) 120 days from the date of lodgement
(c) 90 days from the date of lodgement
(d) 60 days from the date of lodgement
(e) 45 days from the date of lodgement

Answer & Explanation
Ans.7.(c)
Exp. As provided by the section in clause 5, the caveat stays in force for a period of 90 days. If within these 90 days an application is filed, then the court, as well as the applicant, has to give notice to the caveator.

Q8. What is the purpose of Central Registry?
(a) Collection of information related to securitization cases
(b) Registration of information relating to secured creditors and related borrowers
(c) Storehouse of information relating to securitized assets
(d) Registration of transaction of securitisation and reconstruction of financial assets and creation of security interest
(e) None of these

Answer & Explanation
Ans.8.(d)
Exp. The object of the company is to maintain and operate a Registration System for the purpose of registration of transactions of securitisation, asset reconstruction of financial assets and creation of security interest over property.

Q9. Who shall be responsible for furnishing information on modification and satisfaction of security interest?
(a) Only secured creditor
(b) Asset Reconstruction Company or secured creditor
(c) Only the asset reconstruction company
(d) Borrower or secured creditor
(e) None of these

Answer & Explanation
Ans.9.(b)
Exp. Asset Reconstruction Company or secured creditor shall be responsible for furnishing information on modification and satisfaction of security interest.

Q10. With which of the following is SARFAESI Act 2002 related
(a) Fixation of interest rates
(b) Regulation of foreign exchange
(c) Recovery of Bad loans
(d) Fixation of Repo rate
(e) None of these

Answer & Explanation
Ans.10.(c)
Exp. SARFAESI Act 2002 is related to recovery of bad loans.

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