The Parliament on February 02, 2024, issued the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Amendment) Bill, 2023 to amend the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
The following has been amended namely: -
• In Section 2 which states “Definitions” in clause (c) of sub-section (1), the following words shall be omitted, namely,—
"(iva) a multi-State co-operative bank; or".
• After section 31A is related to “Power to exempt a class or classes of banks or financial institutions” the following new sections shall be inserted, namely, —
"31B. Notwithstanding anything contained in this Act, co-operative banks or any other financial institutions established under any State Act shall be excluded from the operation of this Act.
31C. Notwithstanding anything contained in this Act, the provisions of this Act shall not apply, —
(i) in the event of default by a borrower who has taken financial assistance for an amount not exceeding ten lakh rupees; or
(ii) in the event of default by a borrower, when his debt security is the only dwelling unit or house in the ownership of the borrower and his family, in India or elsewhere,".
[Bill No. XVIII of 2023]
