Question

Under Section 6(3) of the SARFAESI Act, where no notice of acquisition of financial assets under Section 6(1) is given by a bank or financial institution to the obligor, and the bank subsequently receives money from the obligor, what is the legal character of such money in the bank's hands?

A The bank may retain the money as its own and adjust it against the loan account
B The bank must deposit the money with the Reserve Bank of India
C The money is forfeited to the Central Government
D The money constitutes a trust held by the bank for the benefit of and on behalf of the ARC
E The bank may use the money for payment of its own operational expenses
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