The Reserve Bank of India (RBI) on Wednesday said the committee on asset reconstruction companies (ARCs) has invited views and suggestions from market participants and other stakeholders. This comes after the Central Bank highlighted that the existing ARC industry has registered a lackluster performance so far. The RBI on April 7 had announced the setting up of a committee, under the chairmanship of Sudarshan Sen, former ED (RBI), to undertake a comprehensive review of the working of ARCs in the financial sector ecosystem.
On April 19, RBI had set up a committee to undertake a comprehensive review of the working of asset reconstruction companies (ARCs) in the financial sector ecosystem and recommend suitable measures for enabling them to meet the growing requirements.
As per the terms of reference of the committee, the panel will review the existing legal and regulatory framework applicable to ARCs and recommend measures to improve the efficacy of ARCs. It will also review the role of ARCs in resolution of stressed assets including under the Insolvency and Bankruptcy Code (IBC), and give suggestions for improving liquidity in and trading of security receipts. Besides, it has also been asked to review business models of the ARCs.
RBI issues circular to fix term of MD and CEO of banks
The second wave of COVID-19 has not battered the Indian economy: RBI Bulletin
RBI restrains American Express Banking Corp, Diners Club from onboarding new customers