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 2019
    A Only i Correct Answer Incorrect Answer
    B Only i and iii Correct Answer Incorrect Answer
    C Only ii and iii Correct Answer Incorrect Answer
    D Only iii Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    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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