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JAIIB PPB Unit 29 — Important Laws Relating to Recovery of Dues: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 2 of the November 2026 cycle (22 November 2026)

This page is a free slice of our JAIIB PPB question bank for Unit 29 — Important Laws Relating to Recovery of Dues (Module B — Functions of Banks). The Mock Centre holds 95 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

PPB · Module B95 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. DRT (RDB Act 1993, Narasimham-I; validity — Delhi HC Bar Assn): ₹20 lakh+, single Presiding Officer (district-judge grade), 180-day disposal, Recovery Officer with IT-Act powers; DRAT appeal — 50% deposit (reducible 25%).
  2. SARFAESI 2002 (Andhyarujina; validity — Mardia Chemicals 2004): 60-day notice (13(2)), 15-day reasoned reply (13(3A)), 13(4) measures, Sec. 14 CMM/DM help, Sec. 17 DRT application 45 days, exclusions (Sec. 31) — agricultural land, pledge/lien, ≤₹1 lakh, <20% residue; sale — 25% upfront + balance 15 days (≤3 months); limitation 3 years; Transcore — DRT+SARFAESI cumulative.
  3. ARCs: NOF ₹300 crore, SRs to qualified buyers, 60% secured-creditor consent for reconstruction measures; CERSAI live 31 Mar 2011 — registration precondition to enforcement.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
DRT orders are appealed to the:
Why (b): DRT orders are appealed to the DRAT — the Debts Recovery Appellate Tribunal; writ petitions to the High Court run on a separate track.
Question 2 of 5
The apex IBC regulator is:
Why (c): The apex IBC regulator is the IBBI — the Insolvency and Bankruptcy Board of India, regulating professionals, agencies, utilities and processes.
Question 3 of 5
Lok Adalats are organised under the:
Why (b): Lok Adalats are organised under the LEGAL SERVICES AUTHORITIES ACT, 1987 — no separate 'Lok Adalats Act' exists; the fictitious statute is the trap.
Question 4 of 5
A Debts Recovery Tribunal (DRT) consists of:
Why (a): A DRT has ONE Presiding Officer — not a three-member bench; the appellate DRAT likewise has a Chairperson.
Question 5 of 5
At a SARFAESI auction, the buyer pays:
Why (b): The 25%-now-75%-in-15-days discipline keeps auctions serious; forfeiture punishes speculative bids.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Narasimham (DRT)Andhyarujina (SARFAESI)The two parent committees
Delhi HC Bar AssnMardia ChemicalsDRT validity vs SARFAESI validity
Practise all 95 questions on Unit 29. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,280 PPB questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.