Under Section 13(2) of the SARFAESI Act, 2002, after classifying a loan account as an NPA, a secured creditor must serve a demand notice on the borrower. What is the time period given to the borrower to repay the dues before the secured creditor can enforce the security interest?

Explanation:  Under  Section 13(2) of the SARFAESI Act, 2002 , once a borrower's account is classified as a  Non-Performing Asset (NPA)  as per RBI guidelines, the secured creditor (bank or financial institution) must serve a written demand notice on the borrower giving them  60 days  to repay the outstanding dues. Only if the borrower  fails to discharge the liability  in full within this 60-day period can the secured creditor proceed to enforce the security interest under Section 13(4) by taking possession of the secured asset, managing it, or selling it  without the intervention of any court or tribunal . This 60-day notice period is the cornerstone of the entire SARFAESI enforcement mechanism. One important nuance tested in exams: if the borrower raises an  objection  to the notice within the 60-day period, the secured creditor is required to communicate the reasons for non-acceptance of the objection  within 15 days . Additionally, under  Section 17 , a borrower aggrieved by any action of the secured creditor can approach the  DRT within 45 days  of the possession notice. The DRT may in its discretion require the deposit of a portion of the claimed amount.