Feature Post

UFBU Calls Off Nationwide Bank Strike on 24th and 25th Mar 2025 After Assurances from Finance Ministry and IBA

I n a significant development on March 21, 2025, the United Forum of Bank Unions (UFBU) has decided to call off their two-day nationwide strike, which was originally planned for March 24 and 25. This decision was made after the UFBU received positive reassurances from both the Finance Ministry and the Indian Banks’ Association (IBA) regarding their key demands. The banking unions, under the umbrella body of UFBU, represent employees from nine major unions across the country, including AIBEA, AIBOC, NCBE, AIBOA, and BEFI. The unions had earlier called for the nationwide strike to protest against several ongoing issues that they believe impact the welfare and job security of bank employees. Key Issues Behind the Proposed Strike The strike was initially called by UFBU to address a range of pressing concerns, some of which have been lingering for years. The union's main demands included: Five-Day Workweek for Bank Employees:  One of the most anticipated demands was the implementation o...
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SARFAESI - Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest

SARFAESI - Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002.

Some Important Facts about SARFAESI- 


  •  Amended in 2004. (supreme court direction in marding  chemicals vs Union Bank of India and others).
  •  Act extend to all India (including J&K).
  •  Court Jurisdiction - DRT & DRAT 
  •  3 provisions
       1) Creation of ARC
       2) Setting up of Central Registry
       3) Sale of securities without filing suit

1)Asset Reconstruction Company
  •       Created under Sarfaesi Act
  •       Purchase NPA from banks/FI
  •       Recovery Period - 5 yrs.
  •       Minimum Capital - 100cr.
  •       Net Worth - at least 15% of NPA acquired all the time.
  •       Capital Adequacy Ratio -15%.
2) Central Registry (Sarfaesi)
Central Registry of Security Sale Asset Reconstruction and Security Interest Act.
  •  Govt. Company.
  •  Mandatory  Registration - Hypothecation , Mortgage
  •  Period of Registration -30 days, Central registrar can extend
  •  Form 1 - Registration & Modification of Charge
  •  Form 2 - Satisfaction of Charge
  •  Fee within 30 days - Upto 5 Lac - 50/-
  •  Fee Within 30 days - above 5 Lac - 100/-
  •  Fee for delay 
    • Between 31st to 40th day - 2 times
    • Between 41st to 50th day - 5 times
    • Between 51st to 60th day - 10times
    • Beyond 60 days, supreme court permission required.
     3) Sale of Security 
  •  Without court intervention
  •  Consent of 60% share value by amount in ease of consortium
  •  With consent of DRT as per supreme court judgement in transcone vs Union Bank of India.
  •  Action of behalf of bank - Authorized officer scale IV and above or any officer authorized by board.
  •  Loan A/C not eligible  for serfasi
    • Balance upto 1 lac 
    • Loan against pledge or lien or deposit
    • Due amount <20% of principle interest
    • Security not changed to the bank or change not registered with CERFAESI
    • Agricultural land ,Vessel , Aircraft cannot be sold.

1st Stage of Sale 
  • Possession - 60 days notice before possession.
  • Objection by borrower to notice - Reply within 15 days.
  • Borrower can go DRT within 45 days against notice.
  • Need not deposit any fee.
  • Appeal to DRAT against DRT in 30 days.
  • Appeal - 50% deposit of due amount can be reduced 25%.


2nd Stage of Sale  
  • 30 days notice to borrower 
  • Min. sale price cannot be less than respective price fixed by bank
  • sale below reserve price only with consent of owner  of security
  • Payment by purchaser - To pay 25% immediate balance in 15 days. Failing which amount already paid is forfeited.  

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