As part of the Statement on Developmental and Regulatory Policies released along with the Monetary Policy Statement on April 7, 2021, the Reserve Bank of India (RBI) had announced setting up of a Committee to undertake a comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem and recommend suitable measures for enabling such entities to meet the growing requirements of the financial sector. Accordingly, RBI has constituted a Committee with the following composition:
- Shri Sudarshan Sen, former Executive Director, RBI – Chairman
- Ms. Vishakha Mulye, Executive Director, ICICI Bank – Member
- Shri P N Prasad, former Dy. Managing Director, SBI – Member
- Shri Rohit Prasad, Professor of Economics, MDI, Gurgaon – Member
- Shri Abizer Diwanji, Partner, Ernst & Young – Member
- Shri R Anand, Chartered Accountant – Member
The terms of reference of the Committee will be as under:
(i) Review of existing legal and regulatory framework applicable to ARCs and recommend measures to improve efficacy of ARCs;
(ii) Review of role of ARCs in resolution of stressed assets including under Insolvency & Bankruptcy Code (IBC), 2016;
(iii) Suggestions for improving liquidity in and trading of security receipts;
(iv) Review of business models of the ARCs;
(v) Any other matter relevant to the functioning, transparency and governance of ARCs.
The Committee will submit its report within three months from the date of its first meeting. Department of Regulation, Reserve Bank of India will provide the necessary secretarial support to the Committee.