RBI panel on ARCs invites views from market participants, other stakeholders businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
RBI article calls for monitoring movement of funds between banks and ARCs
April 27, 2021
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Banks not just major shareholders of and lenders to Asset Reconstruction Companies but also sellers of non-performing assets to them
It may be necessary to monitor if there is a circuitous movement of funds between banks and Asset Reconstruction Companies (ARCs), according to an article in the Reserve Bank of India’s latest monthly bulletin.
This observation comes in the backdrop of banks being not just major shareholders of and lenders to ARCs but also sellers of non-performing assets (NPAs) to them, it added.
A movement of this kind can have implications for the genuine sale of NPAs and the overall growth of the ARC industry, said RBI officials Amarnath Yadav and Pallavi Chavan from the Department of Supervision, in the article.
Rupee fall is hurting bonds now among Asia’s worst
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Last Updated: Apr 22, 2021, 08:04 AM IST
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The weaker rupee is also making borrowers hesitate to tap what would otherwise be some of the lowest borrowing costs ever in the dollar bond market.
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By Rahul Satija
A slide in the rupee is exacerbating a slump in Indian corporate dollar notes that are now among the worst performers in Asia, just as concerns mount that companies are hedging less.
The securities have lost about 0.1% in April, worse than a 0.4% gain for a broader Asian dollar bond gauge, according to a Bloomberg Barclays indexes. All the other countries in Asia have posted positive returns, except China which lost about 0.4% after the stumble by China Huarong Asset Management Co.
RBI constitutes Committee on functioning of ARCs sierraleonetimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sierraleonetimes.com Daily Mail and Mail on Sunday newspapers.
RBI sets up panel to review working of ARCs
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Send Earlier this month, the Reserve Bank had announced setting up a committee to undertake a comprehensive review of the working of ARCs.
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Mumbai:
The RBI on Monday 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.
The six-member committee will be headed by Sudarshan Sen, former Executive Director, Reserve Bank of India.
Earlier this month, the Reserve Bank had announced setting up a committee to undertake a comprehensive review of the working of ARCs.