Reserve Bank of India : From 'One-size-fit-All' to Differentiated Guidances
After withdrawing Master Direction on AML/CFT by end 2025, Reserve bank of India has come up with individual Master Direction for each segment it manages. 1. Asset Reconstruction Companies (ARCs) · Definition: Specialized financial institutions licensed by the Reserve Bank of India (RBI) under Section 3 of the SARFAESI Act, 2002 to acquire Non-Performing Assets (NPAs) or bad loans from banks and financial institutions. · Core Functions: o Purchase stressed assets at a mutually agreed negotiable price to clean bank balance sheets. o Issue Security Receipts (SRs) to Qualified Buyers (QBs). o Undertake recovery and resolution strategies such as debt restructuring, change in management, property sales, or insolvency resolutions. · Key Regulations: Governed by RBI directions requiring...