Question
Which of the following is not true about Asset
Reconstruction Companies (ARCs)? i. Asset Care & Reconstruction Enterprise Ltd (ACRE) is the first ARC in India ii. ARCs are created under SARFAESI Act 2002 iii. Should have Net Owned Fund of Rs.100 cr by 2019Solution
ARCs are created to make profitable the bad assets (NPAs) of Banks and other financial institutions. ARCs are created under SARFAESI Act 2002. ARCIL (Asset Reconstruction Company India Ltd) is the first ARC in India. RBI has asked all existing asset reconstruction companies (ARCs) to have a minimum corpus of Rs100 crore by March 2019.
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