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Asset reconstruction companies banned from buying own group assets

The central bank said ARCs could not buy financial assets from a bank or financial institution which was the sponsor

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1 min read Last Updated : Dec 07 2019 | 3:55 AM IST

The Reserve Bank of India (RBI) on Friday prohibited asset reconstruction companies (ARCs) from buying assets on a bilateral basis from its own group or parent bank.

The central bank said ARCs could not buy financial assets from a bank or financial institution which was the sponsor, or “ a lender or a subscriber to the fund, if any, raised by the ARC for its operations”.

Topics : asset reconstruction companies

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