Question

Securitisation is a process of acquiring the loans classified as
A. Book debts
B. Performing assets
C. Bad debts D. Non performing assets

Answer 1

Answer:

Securitisation is a process of acquiring the loans classified as Non Performing Aseets

Explanation:

The Securitisation Act was implemented In 2002 to address the concerns of the banks that they were not able to recover money fastly when the debtor was unable to pay the amount. Hence this financial act was introduced to acquire the loans classified as Non performing assets (NPA). Through this act, this ensured the bank to seize the asset and sell it directly without any delays to recover money in case the loan cannot be paid