SARFAESI Act for NBFCs: Frequently Asked Questions

The Ministry of Finance, vide notification S.O. 856(E) dated 24th February, 2020, notified NBFCs having asset size of Rs 100 crores or more as financial institution for the purpose of SARFAESI Act, 2002, which shall be entitled for enforcement of security interest in secured debts of Rs 50 lakhs and above. Later, vide notification S.O. 652(E) dated 12th February, 2021, the amount of “Rs. 50 lakhs and above” was reduced to “Rs. 20 lakhs and above”. Accordingly, the reference to “Rs 50 lakhs and above” in the following FAQs is to be read as “Rs 20 lakhs and above”