RRBs can now attach properties

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act 2002 has been extended to the regional rural banks (RRB) too. Under the Act, banks can now exercise the power to take possession of securities and sell them without the intervention of courts. This would enable RRBs to improve their recovery performance. Karnataka Vikas Grameena Bank (KVGB) senior manager said the bank plans to impart suitable training to all its 401 branch managers on the provisions of the Act so as to enable them to make an effective impact on defaulting clients. He said the bank would enforce the Act against wilful defaulters as it provides power to take possession of securities and sell them without waiting for court directions or police action.