RBI allows ARCs to act as Resolution Applicant under Insolvency and Bankruptcy Code, 2016 with some conditions – RBI Review of Regulatory Framework for Asset Reconstruction Companies (ARCs) dated 11.10.2022
ARCs are currently not permitted to commence or carry on any business other than that of securitisation or asset reconstruction or the business referred to in Section 10(1) of the SARFAESI Act without prior approval of the Reserve Bank of India. It has now been decided under the provision of Section 10(2) of the SARFAESI Act to permit ARCs to undertake those activities as a Resolution Applicant (RA) under IBC which are not specifically allowed under the SARFAESI Act. This permission shall be subject to the following conditions