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1. What is the time limit within which any person aggrieved by any measure taken by secured
creditors file an application to the Debt Recovery Tribunal:
A. Within 45 days from the date on which such measure B. Within 30 days from the date on which such measure
had been taken had been taken
C. Within 15 days from the date on which such measure D. Within 60 days from the date on which such measure
had been taken had been taken
Your answer is: A. Within 45 days from the date on which such measure had been taken

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2. Taking over the management of business of a borrower by a secured creditor falls under:
A. Section 13(4)(b) B. Section 9(a)
C. Section 6(1) D. Section 15
Your answer is: A. Section 13(4)(b)

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3. What is the time period for the validity of notice of caveat:
A. 60 days from the date of lodgement B. 90 days from the date of lodgement
C. 120 days from the date of lodgement D. 30 days from the date of lodgement
Your answer is: B. 90 days from the date of lodgement

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4. Under the provision of SARFAESI Act 2002, where a transaction of securitisation is
registered:
A. Registrar of Companies B. Registrar of Central Registry
C. Registrar of Assurances D. Registrar of Firms
Your answer is: C. Registrar of Assurances

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5. Who shall be responsible for the control and management of the Central Register:
A. Central Government B. Central Registrar
C. Any department authorised by the Central Government D. Reserve Bank of India
Your answer is: B. Central Registrar

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6. What time period is to be given to the borrower as a notice before sale of the secured
asset:
A. 30 days B. 60 day
C. 45 days D. 90 days
Your answer is: C. 45 days

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7. . Which of the following does not fall under financial asset:
A. A mortgage, charge, hypothecation or pledge of B. Any right or interest in the security, whether full or part
movable property underlying such debt or receivables
C. Any financial assistance D. Prepaid expenses undertaken with respect to a
movable or immovable property
Your answer is: D. Prepaid expenses undertaken with respect to a movable or immovable property

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8. What is the eligibility of an authorised officer appointed by a secured creditor:
A. He should not be below Deputy General Manager of a B. He should not be below Chief Manager of a public
public sector bank or equivalent sector bank or equivalent
C. He should not be below Assistant Manager of a public D. He should not be below Senior Manager of a public
sector bank or equivalent sector bank or equivalent
Your answer is: B. He should not be below Chief Manager of a public sector bank or equivalent
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9. Who shall be responsible for furnishing information on modification and satisfaction of
security interest:
A. Asset Reconstruction Company or secured creditor B. Only secured creditor
C. Only the asset reconstruction company D. Borrower or secured creditor
Your answer is: A. Asset Reconstruction Company or secured creditor

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10. Which of the following does not fall within the jurisdiction for filing an application by any
person aggrieved by any measure taken under Section 13(4) by secured creditors:
A. Where the cause of action arises, wholly or in part B. Where the secured asset is located
C. Where the branch or any other office of a bank or D. Where the borrower resides
financial institution is maintaining an account in which
debt claimed is outstanding for the time being
Your answer is: C. Where the branch or any other office of a bank or financial institution is maintaining an account in which
debt claimed is outstanding for the time being

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11. Under the provision of SARFAESI Act 2002, what is meant by enforcement of security
interest:
A. sale of assets of the borrowing party by the bank B. sale of charged assets by the secured creditor through
DRT
C. sale of charged assets by the secured creditor without D. getting banks charge registered with Central Registry
court intervention
Your answer is: C. sale of charged assets by the secured creditor without court intervention

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12. if after sale of secured asset, the dues of the secured creditor are not paid fully, what
option does the secured creditor have:
A. ha has to write off the same B. he can file a suit in a civil court
C. he can file a suit in a DRT D. b and c
Your answer is: D. b and c

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13. Under the provision of SARFAESI Act 2002 which of the following is not part of the financial
asset reconstruction:
A. take over of management of the unit B. sale if the asset
C. taking possession of the assets D. none of the above
Your answer is: D. none of the above

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14. Which court shall try any offence punishable under this Act:
A. No Court inferior to that of Metropolitan Magistrate or a B. No Court inferior to that of High Court
Judicial Magistrate of Second Class C. No Court inferior to that of Metropolitan Magistrate or a
Judicial Magistrate of First Class
D. No Court inferior to that of Principal Junior Civil Judge or
a Judicial Magistrate of First Class
Your answer is: C. No Court inferior to that of Metropolitan Magistrate or a Judicial Magistrate of First Class

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15. At the time of take over the bad loans from 3 banks it is found that these banks have field
suits in different DRTs. Securitisation company wants to get these cases in one DRT, which
can be permitted by:
A. Central Govt B. Supreme Cour
C. . RBI D. DRAT
Your answer is: D. DRAT
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16. What is the time limit within which appeal against penalties can be made:
A. 90 days from the date on which such order was passed B. 30 days from the date on which such order was passed
C. 120 days from the date on which such order was passed D. 60 days from the date on which such order was passed
Your answer is: B. 30 days from the date on which such order was passed

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17. If the payment is not made by the borrower in the prescribed time after receipt of notice,
which of the following steps cannot be taken by the secured creditor:
A. Take possession of the secured assets of the borrower B. Appoint any person (manager) to manage the secured
including the right to transfer by way of lease, assignment assets, the possession of which has been taken over by the
or sale for realising the secured asset secured creditor
C. To sell the assets of the borrower without further D. Takeover the management of business of the borrower
procedures that is in the possession of the secured
creditor and utilise the amount against the amount due
by the borrower
Your answer is: C. To sell the assets of the borrower without further procedures that is in the possession of the secured
creditor and utilise the amount against the amount due by the borrower

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18. Which of the following is not an essential ingredient to initiate action for enforcement of
security under SARFAESI act:
A. There must be a security agreement in which borrower is B. There must be a default in repayment of secured debt or
under liability of the secured creditor instalment thereof
C. The account must be classified as Non-Performing Asset D. The security interest must be at least Rs. 20,000
Your answer is: B. There must be a default in repayment of secured debt or instalment thereof

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19. an asset is sold by the secured creditor, what would be the order for the appropriation of
proceeds:
A. first towards costs, charge incidental towards the B. first towards the dues of the secured creditor
preservation of securities C. first towards costs and dues to the secured on prorate
basis
D. secondly, if there is surplus towards other person entitled
to the asse
Your answer is: A. first towards costs, charge incidental towards the preservation of securities

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20. Which of the following Risk develops from the business transactions done by the Banks
exposed to potential Loss?
A. Financial Risk B. Market Risk
C. Liquidity Risk D. Interest Rate Risk
Your answer is: A. Financial Risk

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21. What is the time limit within which the secured creditor can initiate an action for
enforcement of security:
A. If the liability is not discharged within 60 days of B. If the liability is not discharged within 30 days of receipt
receipt of notice from the secured creditor of notice from the secured creditor
C. If the liability is not discharged within 45 days of receipt D. If the liability is not discharged within 90 days of receipt
of notice from the secured creditor of notice from the secured creditor
Your answer is: A. If the liability is not discharged within 60 days of receipt of notice from the secured creditor
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22. Can debtor of a borrower make payment directly to the Bank:
A. No, the debtor of borrower cannot be asked to make B. Yes, where the debtor of borrower has acquired any of
payment directly to the Bank the secured assets from the borrower and from whom
any money is due to the borrower
C. The debtor of borrower can make payment directly to D. The debtor of borrower can make payment directly to
the Bank but with the prior approval of RBI the Bank, if the Bank agrees to such an arrangement
Your answer is: B. Yes, where the debtor of borrower has acquired any of the secured assets from the borrower and from
whom any money is due to the borrower

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23. When a secured creditor takes over the management of business of a borrower, he may
appoint:
A. As many persons as it thinks fit to be the B. As many persons as it thinks fit to be the registered
directors/administrators of the business of that valuers of the business of that borrower
borrower, as the case may be C. The auditors of the business of that borrower
D. The liquidator who shall take over the liquidation
proceedings
Your answer is: A. As many persons as it thinks fit to be the directors/administrators of the business of that borrower, as the
case may be

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24. In case the secured creditor expects resistance, who can he request to take possession
of the assets or documents:
A. Chief Metropolitan Magistrate or the District B. Principal Junior Civil Judge within whose jurisdiction the
Magistrate within whose jurisdiction the asset is located asset is located
C. Assistant Civil Judge or Additional Civil Judge within D. Chief Judicial Magistrate within whose jurisdiction the
whose jurisdiction the asset is located asset is located
Your answer is: A. Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction the asset is located

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25. If there are more than one borrower, how should the demand notice be served:
A. Demand notice must be served only on those borrowers B. Demand notice must be served on any one of the
whose borrowing is more than 40% of the debt borrowers
C. Demand notice must be served on the person whose D. Demand notice must be served on all borrowers
name appears first in the list
Your answer is: D. Demand notice must be served on all borrowers