Section 12A of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
1[12A. Power of Reserve Bank to call for statements and information.-- The Reserve Bank may at any time direct a 2[asset reconstruction company] to furnish it within such time as may be specified by the Reserve Bank, with such statements and information relating to the business or affairs of such 2[asset reconstruction company] (including any business or affairs with which such company is concerned) as the Reserve Bank may consider necessary or expedient to obtain for the purposes of this Act.]
Summary
- The Reserve Bank has the authority to ask any asset reconstruction company for business records or other details at any time.
- When the Reserve Bank asks for this information, the company must provide it within the time frame the Bank sets.
- This information can include any statements or details regarding the company's business or affairs.
Practical examples
FAQ
1. Can the Reserve Bank ask for information about a specific deal under Section 12A of the SARFAESI Act?
Yes, under Section 12A of the Act, the Reserve Bank can call for statements and information relating to the business or affairs of the company.
2. Is there a fixed deadline for providing information under Section 12A of the Act?
The deadline is not fixed by law, it must be furnished within such time as may be specified by the Reserve Bank in its direction.
3. Why would the Reserve Bank use Section 12A of the Act?
The Reserve Bank uses this section when it considers it necessary or expedient to obtain information for the purposes of the Act.
Test yourself
Q1.Under Section 12A of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what can the Reserve Bank demand from an ARC?
Q2.According to Section 12A of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, when must a company provide the requested information?
Q3.Under Section 12A of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, can the RBI ask for information regarding the company's concerns?
Q4.What is the purpose of the Reserve Bank calling for information under Section 12A of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002?