Non-Performing Assets Recovery Channel: An Assessment of Securitization Act-2002

Author: Divya Jain*a, Ravindra Kumar Sainib aDepartment of Commerce, Vardhaman (PG) College Bijnor (UP), India Email Id: divya14483@gmail.com bDepartment of Management & Commerce, COER-School of Management Roorkee (U.K.) India

Abstract:
The accretion in colossal NPAs (Non-Performing Assets or Non-Performing Loans) in Indian banks has been considered a major challenging problem. In order to overcome the problem of NPAs large number of initiatives were taken by the Government of India, RBI and various Financial Institutions. Nevertheless, problem is still unsolved. On the same way of NPAs management to accelerate the recovery rate and to overcome legal problems of collateral property. ‘The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act-2002 (Securitization Act, 2002) came into force in 2002.This paper assesses, the performance of Securitization Act, 2002 as a most expected and effective recovery channel. At the initial stage of incursion of Securitization Act it was seems very effective but latter on consequences are not as expected.

Keywords:Banking, Non-Performing Assets (NPAs), Recovery

DOI:

International Journal of Trade & Commerce (Vol: 4 Issue:2)