Question
The SARFAESI Act also provides for the establishment of
ARCs regulated by RBI. What is the full form of ARC?Solution
The SARFAESI Act, 2002 is meant to empower banks and other financial institutions, to attach the secured assets (that serves as security) of a loan defaulter. The SARFAESI Act also provides for the establishment of Asset Reconstruction Companies (ARCs) regulated by RBI to acquire assets from banks and financial institutions. The Act provides for sale of financial assets by banks and financial institutions to ARCs.
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