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

Q15: The implementation of enforcement measures under the SARFAESI Act involves specific procedural roles and notices. Which of the following statements are correct?

1. The auction and sale of secured assets are conducted by a designated "Authorised Officer" acting on behalf of the bank.
2. When a bank takes physical control of an asset, a "Possession Notice" must be affixed on the property to inform the public and the borrower of the bank's action.
A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2
✅ Correct Answer: C
The enforcement rules mandate that an "Authorised Officer" of the secured creditor is responsible for executing the sale and auction process.
Additionally, affixing a Possession Notice on the property is a mandatory step to publicly declare the bank's possession and warn third parties against dealing with the asset.