Section 31 of the SARFAESI Act excludes loans where the amount due is less than ?1 Lakh OR where the remaining debt is less than 20% of the original principal and interest.

Lok Adalats provide a low-cost, faster resolution mechanism for smaller loans. The monetary ceiling for cases to be referred to Lok Adalat is ?20 Lakh.

To ensure ethical behavior and knowledge of regulations, RBI mandates that all recovery agents must undergo 100 hours of training and pass the DRA examination conducted by IIBF.

Section 13(4) empowers the bank to take possession of the secured assets, take over management, or appoint a person to manage the assets if the borrower fails to pay within 60 days of the demand notice.

Under Section 30 of the RDDBFI Act, an appeal against the order of the Recovery Officer lies with the Presiding Officer of the DRT itself, not directly to the DRAT.

Under the Legal Services Authorities Act, the award of a Lok Adalat is deemed to be a decree of a civil court and is final. Since it is based on compromise/agreement, no appeal is allowed.

To protect farmers, the SARFAESI Act explicitly excludes "any security interest created in agricultural land" from its purview. Banks must use civil courts or DRT for recovery in such cases.

ARCs pay banks a portion in cash (e.g., 15%) and the balance in the form of Security Receipts (SRs), which represent an undivided right/interest in the acquired asset.

The Sale Notice of 30 days is mandatory. If the sale fails and a subsequent sale is conducted, the notice period is reduced to 15 days.

Banks must file details of security interest with the Central Registry (CERSAI) within 30 days to ensure public record and priority of charge.

Under the RDDBFI Act, a bank can file an application in the DRT within whose jurisdiction the defendant resides/works OR where the cause of action arises wholly or in part.

To prevent delays, the Act specifically bars Civil Courts from issuing injunctions on matters that the DRT/DRAT is empowered to determine.

To encourage compromise, the Legal Services Authorities Act provides that if a case is settled in Lok Adalat, the court fee originally paid is refunded to the plaintiff.

As per RBI guidelines, ARCs must pay at least 15% of the agreed price in cash, and the remaining 85% can be in Security Receipts (SRs).

Section 21 of the RDDBFI Act mandates a pre-deposit of 50% of the amount of debt due as determined by the DRT. The Chairperson of DRAT has the discretion to reduce this amount, but not below 25%. This ensures that appeals are not used merely to delay recovery.

Amendments to the Act state that the right of redemption is available to the borrower only till the date of publication of the auction notice or public notice for sale/transfer.

Every award of the Lok Adalat shall be deemed to be a decree of a Civil Court. It is final and binding, and executed directly as a decree.

Under the SARFAESI Act, details of securitisation, asset reconstruction, or creation of security interest must be filed with the Central Registry (CERSAI) within 30 days.

Section 34 ensures that Civil Courts cannot entertain any suit or proceeding in respect of any matter which a DRT or DRAT is empowered to determine, preventing delays in recovery.