New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following is true about the governance

    structure of Asset Reconstruction Companies (ARCs)?
    A At least half of the Board of Directors of the ARC comprises of independent directors. Correct Answer Incorrect Answer
    B The CEO of an ARC can hold the position for up to 15 years without renewal Correct Answer Incorrect Answer
    C ARCs are prohibited from being members of any credit information company Correct Answer Incorrect Answer
    D ARCs can raise funds from deposits made by the public Correct Answer Incorrect Answer
    E ARCs must have at least one-third of their directors from the public sector. Correct Answer Incorrect Answer

    Solution

       ARCs are required to have a majority of independent directors on their board. To ensure transparency and proper governance, ARCs are required to have a majority of independent directors on their board. This helps in making unbiased decisions, especially when dealing with stressed assets.  

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