PFS gets 'Financial Institution' tag under SARFAESI Act
The status would help firms like PFS to deal with non-performing assets effectively.
New Delhi: Government has specified PTC India Financial Services Limited (PFS) as a 'Financial Institution' (FI) under SARFAESI Act, 2002, a status which would help recover loans effectively.
"PFS is to inform that it has been specified as Financial Institution by the Government under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002," the company said in a release.
The notification on the status has been released by the Financial Services Department in the Finance Ministry.
"With this, PFS would take appropriate steps under SARFAESI Act wherever circumstances specific to such assets so require," PFS Managing Director and CEO Ashok Haldia said.
This is an important notification which would help a long way in enabling large infrastructure finance companies like PFS to take effective measures in dealing with non-performing assets and in relation to recovery of dues/loan amount and restoration of economic value of the stressed assets, he said.
"This would help in reducing the non-performing/stress assets," he added.
PFS is a non-banking finance company promoted by PTC India Limited. It has been granted the status of an infrastructure finance company by the Reserve Bank.