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SARFAESI Act Amendment: Centre’s Plan on CERSAI

22 January 20261 min read
BANKING & FINANCESARFAESI ActAmendment:Centre’s Plan onCERSAI22 January 2026safalsetu.com

Why in the news

The government wants to remove legal ambiguity, tighten oversight of the central registry and ease doing business.

Key facts

  • Proposal: expressly empower the Centre to direct CERSAI.
  • Present gap causes governance gaps and Centre-RBI overlap concerns.
TopicDetail
SARFAESI Act, 2002Lets lenders recover NPAs without court intervention by seizing, managing and selling secured assets
CERSAICentral registry of security interests and securitisation or reconstruction deals; curbs multiple lending, fraud and information asymmetry
Legal basisSection 20; set up by the Central Government

Exam angle

  • Full name: Central Registry of Securitisation Asset Reconstruction and Security Interest of India.

Test yourself

1. Under which section of the SARFAESI Act, 2002 was CERSAI set up by the Central Government?

Section 20 authorises the Centre to set up CERSAI.

2. What main power does the SARFAESI Act give banks and financial institutions?

Lenders can seize, manage and sell secured assets of defaulters without court.

3. The proposed SARFAESI amendment would explicitly empower the Centre to do what regarding CERSAI?

It would let the Centre issue directions while keeping RBI's powers intact.

This topic is part of Daily Current Affairs 21 January 2026 (16 topics).

All topics of the dayDay quizJanuary 2026

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