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

Q12: Section 13(4) of the SARFAESI Act grants secured creditors various powers to recover their dues. Which of the following actions is NOT permitted to the creditor under this section?

A
Taking possession of the secured assets
B
Taking over the management of the business of the borrower
C
Arresting and detaining the borrower in civil prison
D
Appointing a manager to manage the secured assets
✅ Correct Answer: C
The SARFAESI Act is a civil enforcement statute that allows for asset-based recovery (possession, management takeover, sale, etc.). It does not grant police powers or the power to arrest or detain individuals; such actions fall under criminal jurisdiction or specific civil contempt procedures, not Section 13(4).