📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Under Section 25(1) of the SARFAESI Act, an ARC or

      secured creditor must intimate the Central Registrar of the payment or satisfaction in full of any security interest within what period?
      A 15 days from the date of payment or satisfaction Correct Answer Incorrect Answer
      B 30 days from the date of payment or satisfaction Correct Answer Incorrect Answer
      C 60 days from the date of payment or satisfaction Correct Answer Incorrect Answer
      D 45 days from the date of payment or satisfaction Correct Answer Incorrect Answer
      E 7 days from the date of payment or satisfaction Correct Answer Incorrect Answer

      Solution

      Section 25(1) mandates that the ARC or secured creditors, as the case may be, shall give intimation to the Central Registrar of the payment or satisfaction in full of any security interest requiring registration under Chapter IV, within 30 days from the date of such payment or satisfaction. This obligation to report satisfaction is critical for maintaining an accurate and current Central Register, which acts as a public database of security interests. If the ARC or secured creditor fails to report timely satisfaction, Section 25(2) provides a mechanism for the borrower to give intimation directly to the Central Registrar, with a show-cause notice (not exceeding 14 days) being issued to the ARC/creditor before recording satisfaction.

      Practice Next
      More Banking Related Laws Questions
      ask-question