Settlement of dues only after examining all options, RBI to ARCs
2 months ago

Settlement of dues only after examining all options, RBI to ARCs

The Hindu  

The RBI on Monday modified guidelines related to Asset Reconstruction Companies, envisaging that settlement with the borrower should be undertaken only after all possible ways to recover dues have been examined. After a review, it has been decided to revise guidelines on the settlement of dues payable by the borrowers to ARCs, a Reserve Bank circular said. According to the latest guidelines, the policy should, inter alia, cover aspects like a cut-off date for one-time settlement eligibility, permissible sacrifice for various categories of exposures while arriving at the settlement amount and the methodology for arriving at the realisable value of the security. "Settlement with the borrower shall be done only after all possible ways to recover the dues have been examined, and settlement is considered as the best option available," the RBI said.

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Why RBI's new rules on bad loans have enthused buyers of stressed asset
2 months ago

Why RBI's new rules on bad loans have enthused buyers of stressed asset

Live Mint  

A central bank decision to ease the bad loan settlement process loans of up to ₹1 crore by asset reconstruction companies has come as a relief for these firms scrambling to secure multiple approvals under the erstwhile guidelines. Given that many of these turnaround companies have started to buy more bad loans in retail and micro finance portfolios, the revised …

Settlement with borrowers only after exhausting all options, RBI to ARCs
2 months ago

Settlement with borrowers only after exhausting all options, RBI to ARCs

Live Mint  

Mumbai, Jan 20 The Reserve Bank on Monday asked Asset Reconstruction Companies to go for settlement with borrowers only after exhausting all possible ways to recover dues. The policy should, inter alia, cover aspects like a cut-off date for one-time settlement eligibility, permissible sacrifice for various categories of exposures while arriving at the settlement amount and the methodology for arriving …

ARCs or their recovery agents should not harass borrowers says RBI Dy Governor Rao
9 months, 3 weeks ago

ARCs or their recovery agents should not harass borrowers says RBI Dy Governor Rao

Deccan Chronicle  

Mumbai: The Reserve Bank of India’s deputy governor M Rajeshwar Rao said that governance in asset reconstruction companies is a concern for the central bank. Speaking at the conference on “Governance in ARCs-Towards effective resolutions” held this month, the speech which was uploaded on the central bank’s site on Friday, Rao said that promoters in an Indian market are large …

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