• Feedback
  • RSS Feed
  • Sitemap
Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
Home Business

RBI Warns Arcs Over Evergreening Distressed Assets

OMMCOM NEWS by OMMCOM NEWS
May 29, 2024
in Business
RBI

Mumbai: The RBI has found several instances of Asset Reconstruction Companies, which have been set up to recover NPAs of banks, not fulfilling their role but instead using innovative ways to structure transactions in order to circumvent regulations.

The RBI has sent a clear message to ARC chiefs that they must follow the regulations in both letter and spirit.

“During the course of our onsite examinations, we have come across instances where ARCs have been used or allowed themselves to be used as a conduit to evergreen distressed assets. In many cases, there is a lack of transparency and consistency in the issuance and periodical valuation of Security Receipts (SRs). The practices surrounding levy of management fee leaves much to be desired,” RBI Deputy Governor Swaminathan J said at a meeting with ARCs recently.

He pointed out that some ARCs while enjoying the full benefits of the special position granted to them under the SARFAESI Act and the RBI regulations, have been found to be using innovative ways to structure transactions in order to circumvent regulations.

Swaminathan also warned that in extreme cases, the RBI may be forced to take regulatory or supervisory actions.

He pointed out that with regulations shifting towards a more principles-based approach, supervision is required to focus more on the substance of transactions rather than their legal form.

The RBI Deputy Governor urged ARC chiefs to adopt a regulation-plus approach where you not only comply with the letter of the regulation but also its spirit.

After a perusal of the scorecard of ARCs, the RBI has concluded that there are more missed opportunities and less than optimal performance by ARCs in fulfilling the principal mandates under the SARFAESI Act.

ARCs enjoy a special place in the financial ecosystem as they are special purpose vehicles set up to help lighten the banking system from the high-value NPAs and are also specialised agencies for maximising recovery and reconstruction efforts.

(IANS)

Tags: RBI
ShareTweetSendSharePinShareSend
Previous Post

Two Kids Killed, One Hurt As Car In Convoy Of Brij Bhushan Singh’s Son Runs Them Over In UP

Next Post

Youth Found Hanging In Cashew Forest

Related Posts

FM Sitharaman
Business

FM Sitharaman Takes Stock Of Steps For Cybersecurity At Banks Amid Rising Border Tensions

May 9, 2025
Morningstar DBRS
Business

India’s Credit Rating Upgraded To ‘BBB’ With ‘Stable’ Trend: Morningstar DBRS

May 9, 2025
Stock Markets, Sensex
Business

India-Pakistan Tensions Trigger Selloff In Stock Markets, Sensex Falls 880 Points

May 9, 2025
ATMs
Business

SBI, PNB Other Banks Say ATMs, Digital Services Operating Smoothly

May 9, 2025
India-Pak Tensions
Business

Indian Oil, BPCL Assure Sufficient Fuel Supply Amid India-Pak Tensions

May 9, 2025
Business

India-Pak Conflict Affects 11 Pc Of Daily Domestic Air Traffic: Industry Data

May 9, 2025
Next Post
suicide

Youth Found Hanging In Cashew Forest

Fintech Startup Bharatx Acquires Zenifi To Enter Medical Lending Market

Telengana cm

KTR Slams Telangana Government Over Seed Shortage For Farmers

Khimji
TPCODL
  • Feedback
  • RSS Feed
  • Sitemap

© 2025 - Ommcom News. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ

© 2025 - Ommcom News. All Rights Reserved.