Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Operational Procedures & Miscellaneous

Q11: In cases of consortium lending where multiple banks have financed a single borrower, enforcement action under the SARFAESI Act requires consensus. What is the minimum percentage of secured creditors (by value) that must agree to initiate such action?

A
51%
B
60%
C
75%
D
90%
✅ Correct Answer: B
Section 13(9) of the SARFAESI Act stipulates that in the case of financing by more than one secured creditor, enforcement action can only be exercised if secured creditors representing not less than 60% in value of the amount outstanding agree to such action.