Question
The Asset Reconstruction Companies (ARCs) in India are
established as per the provision of which among the following?Solution
The Asset Reconstruction Companies (ARCs) are formed as per the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002. Any loan with an outstanding amount of Rs 1 lakh or more will come under the purview of ARCs. RBI has the authority to issue licenses to such companies. Asset Reconstruction Company of India Limited (ARCIL) is the first asset reconstruction company in India.
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