What is the minimum Net Owned Fund (NOF) requirement for

Solution

As per RBI guidelines, with effect from October 11, 2022, an Asset Reconstruction Company (ARC) must maintain a minimum Net Owned Fund (NOF) of ₹300 crore to commence and continue the business of securitisation or asset reconstruction. • This was an upward revision from the earlier requirement of ₹100 crore. • Existing ARCs as on October 11, 2022, were provided a glide path to achieve compliance with the revised NOF threshold. • The higher capital requirement aims to strengthen the financial position of ARCs, ensuring they have sufficient skin in the game and are better placed to handle stressed assets.