Increased Capital Requirements for Asset Reconstruction Companies (ARCs) by Kirti Sharma, April 8, 2017

RBI Announcement

With a view to increase more cash based sales of Non-Performing Assets (NPAs), the Reserve Bank of India (RBI) has amended the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 increasing the capital requirement for Asset Reconstruction Companies (ARCs) to 100 crores from 2 crores in the Statement on Developmental and Regulatory Policies issued on 6th April 2017.


This move of the regulator would raise concern for the smaller ARCs operating in the country to comply with the steep rise in the capital requirement norms.

The final guidelines in this regard shall be issued by the end of April 2017.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *