RBI units up panel to evaluate ARCs working

The Reserve Bank of India (RBI) on Monday arrange a committee to undertake a complete evaluate of the working of asset reconstruction firms (ARCs) within the monetary sector ecosystem and suggest appropriate measures for enabling them to fulfill the rising necessities.
The six-member committee shall be headed by Sudarshan Sen, former Executive Director, RBI. Earlier this month, the RBI had introduced organising of a committee to undertake a complete evaluate of the working of ARCs.
According to the RBI, as per the phrases of reference of the committee, the panel will evaluate the prevailing authorized and regulatory framework relevant to ARCs and suggest measures to enhance efficacy of ARCs.
The panel may even evaluate position of ARCs in decision of confused belongings together with underneath Insolvency and Bankruptcy Code (IBC), and provides solutions for enhancing liquidity in and buying and selling of safety receipts. It has additionally been requested to evaluate enterprise fashions of the ARCs.

“The committee will submit its report within three months from the date of its first meeting. Department of Regulation, Reserve Bank of India, will provide the necessary secretarial support to the Committee,” the central financial institution mentioned.