RBI Issues Master Directions on ‘Asset Reconstruction Companies’
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- Last Updated on 25 April, 2024
Master Direction No. RBI/DOR/2024-25/116 DoR.FIN.REC.16/26.03.001/2024-25; Dated: 24.04.2024
RBI has issued master directions on Asset Reconstruction Companies (ARCs). These directions shall apply to every ARC registered with RBI u/s 3 of the SARFAESI Act, 2002. They outline norms regarding the registration of ARC, the requirement of having a min. net-owned fund, activities of ARCs, and guidelines on ARCs. Further, ARC must have a board-approved policy regarding a change in or takeover of management. These directions shall come into effect on the day they are placed on the website of RBI.
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