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RBI: RBI to set up task force to review working of asset reconstruction companies


Synopsis
Reconstruction companies have in the past requested the RBI to issue guidelines regarding eligibility of ARCs to act as Resolution Applicant in insolvency cases.
India’s central bank on Wednesday announced setting up of a task force to review the regulatory framework governing asset reconstruction companies (ARCs). Governor Shaktikanta Das said that the committee would make recommendations on the policy environment for rehabilitation companies.
The committee is likely to look into the long standing request of ARCs to participate in the bankruptcy process and lower the cost of participating in buying distressed assets.
“ARCs play an important role in the resolution of stressed assets, their potential, however, is yet to be fully realised,” Governor Das said as part of his monetary policy statement on Wednesday. “It is proposed to constitute a committee to undertake a comprehensive review of the working of ARCs and recommend measures to enable thes ....

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