Reserve Bank of India (RBI) has issued Circular RBI/2023-24/63 on September 25, 2023, addressing the display of information related to secured assets possessed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. This move towards greater transparency aims to ensure that Regulated Entities (REs) of the RBI, which act as secured creditors, provide details about borrowers whose secured assets have been taken into possession under the SARFAESI Act.
Transparency Initiative: In a bid to enhance transparency in financial transactions and the handling of secured assets, RBI has mandated that REs under its purview, including commercial banks, co-operative banks, financial institutions, non-banking financial companies (NBFCs), and asset reconstruction companies, must display information regarding borrowers whose secured assets have been taken into possession under the SARFAESI Act, 2002.
Mandatory Information Display: REs are required to upload this information on their respective websites. The circular prescribes a specific format for presenting this data, ensuring uniformity and ease of access for stakeholders. The first such list must be displayed within six (6) months from the date of this circular, and subsequent updates should be made on a monthly basis. This periodic reporting ensures that the information is current and relevant.
Key Data Points: The information to be displayed includes:
- Branch Name
- State
- Borrower Name
- Guarantor Name (where applicable)
- Registered address of the Borrower
- Registered address of the Guarantor (where applicable)
- Outstanding amount (in ₹)
- Asset Classification
- Date of Asset classification
- Details of security possessed
- Name of the Title holder of the security possessed
Enhancing Accountability: By making this information publicly accessible, RBI aims to hold REs accountable for their actions and decisions related to secured assets. This move is expected to foster trust among stakeholders and provide borrowers with greater visibility into the status of their assets.
Conclusion:
RBI’s Circular RBI/2023-24/63 underscores the importance of transparency in the handling of secured assets under the SARFAESI Act, 2002. By mandating REs to display information about borrowers whose assets have been taken into possession, RBI aims to promote greater accountability and trust in the financial system. This initiative aligns with RBI’s commitment to ensuring fair and transparent practices within the financial sector. Borrowers, stakeholders, and the public can access this information on the respective websites of REs, facilitating informed decision-making and promoting financial transparency.
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Reserve Bank of India
RBI/2023-24/63
DoR.FIN.REC.41/20.16.003/2023-24 Dated: September 25, 2023
All Commercial Banks including Small Finance Banks, Local Area Banks and Regional Rural Banks and excluding Payment Banks
All Primary (Urban) Co-operative Banks/ State Co-operative Banks/ Central Co-operative Banks
All India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI and NaBFID)
All Non-Banking Financial Companies including Housing Finance Companies
All Asset Reconstruction Companies
Dear Sir/ Madam
Display of information – Secured assets possessed under the SARFAESI Act, 2002
As a part of the move towards greater transparency, it has been decided that the Regulated Entities (REs) of the Reserve Bank which are secured creditors as per the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, shall display information in respect of the borrowers whose secured assets have been taken into possession by the REs under the Act.
2. REs shall upload this information on their website in the format as prescribed in the Annex. The first such list shall be displayed on the website of REs within six (6) months from the date of this circular, and the list shall be updated on monthly basis.
Yours faithfully,
(J.P. Sharma)
Chief General Manager
Encl: Annex
Annex
Information on secured assets possessed under the SARFAESI Act, 2002
Sl. No |
Branch Name |
State |
Borrower Name |
Guarantor Name (wherever applicable) |
Registered address of the Borrower |
Registered address of the Guarantor (wherever applicable) |
Outstanding amount (in ₹) |
Asset Classification |
Date of Asset classification |
Details of security possessed |
Name of the Title holder of the security possessed |
