Module: General Practice
Q100: Under the SARFAESI Act, what is the significance of the "60-Day Notice" issued under Section 13(2)?
✅ Correct Answer: B
🎯 Quick Answer:
Demand notice giving 60 days to pay.Procedure: 1. Account turns NPA.
2. Bank issues 13(2) Notice demanding full payment.
3. Period: The borrower has 60 days to pay the dues or raise a valid objection.
4. Consequence: If they fail to pay, the bank can take possession of assets under Section 13(4) after the 60 days expire.
Causal Reasoning: This constitutes the "Due Process" requiring the bank to warn the borrower before taking drastic action like seizing property.