The RBI has revised the guidelines for asset reconstruction companies (ARCs), allowing them to settle dues with borrowers after evaluating recovery possibilities. ARCs are now required to frame a board-approved settlement policy. For accounts with over Rs 1 crore, proposals must still be reviewed by an Independent Advisory Committee (IAC). These changes aim to speed up the resolution process.
The Reserve Bank of India (RBI) has allowed asset reconstruction companies (ARCs) to settle dues with borrowers after examining all possible ways to recover their dues, doing away with the earlier direction that needed ARCs to exhaust all measures for recovery before entering into a settlement with borrowers.
|