Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Introduction and Definitions

Q5: The SARFAESI Act prescribes a specific monetary threshold below which the provisions of the Act cannot be invoked. What is the minimum outstanding loan amount required for a bank to initiate action under this Act?

A
₹10,000
B
₹50,000
C
₹1,00,000
D
₹2,00,000
✅ Correct Answer: C
According to Section 31(h) of the SARFAESI Act, the provisions of the Act do not apply to any security interest created in financial assets for securing repayment of any financial assistance not exceeding one lakh rupees (₹1,00,000).