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    Question

    Under the SARFAESI Act, what is the minimum net-owned

    funds (NOF) required for an ARC to operate?
    A ₹100 crore Correct Answer Incorrect Answer
    B ₹200 crore Correct Answer Incorrect Answer
    C ₹300 crore Correct Answer Incorrect Answer
    D ₹500 crore Correct Answer Incorrect Answer
    E ₹1,000 crore Correct Answer Incorrect Answer

    Solution

    Under the SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002, the minimum net-owned funds (NOF) required for an ARC to operate is ₹300 crore. This requirement ensures that ARCs have sufficient financial capacity to acquire distressed assets and carry out recovery operations effectively. The NOF requirement is set by the Reserve Bank of India (RBI) to ensure that the ARC has adequate financial strength and stability

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