RBI Registration for Asset Reconstruction Company (ARC)
An Asset Reconstruction Company (ARC) is a specialized financial institution that acquires non-performing assets (NPAs)
from banks and financial institutions and manages their recovery or resolution.
ARCs are regulated by the Reserve Bank of India (RBI) under the SARFAESI Act, 2002. Registration with RBI is mandatory
before commencing ARC operations.
ND Savla & Associates provides complete assistance for ARC registration, regulatory filings, capital structuring,
and post-registration compliance.
Key Functions of an Asset Reconstruction Company
Acquisition of NPAs
Purchase of stressed assets and non-performing loans from banks and NBFCs.
Debt Resolution
Restructuring, settlement, or enforcement of security interests under SARFAESI.
Asset Recovery
Maximising value recovery through professional management of stressed assets.
Eligibility Criteria for ARC Registration
- Company incorporated under the Companies Act, 2013
- Minimum Net Owned Fund (NOF) of ?300 Crore (as prescribed by RBI)
- Object clause permitting asset reconstruction activities
- Fit and proper promoters, directors, and management
- Robust governance and risk management framework
Our ARC Registration Services
Company Setup
Incorporation and structuring of company aligned with ARC regulations.
RBI Application Filing
Preparation and submission of ARC registration application to RBI.
Policy & Compliance Framework
Drafting of business plan, recovery strategy, and compliance policies.
ARC Registration Process
- Incorporation of company with ARC object clause
- Capital infusion to meet NOF requirement
- Preparation of detailed business and recovery plan
- Online and physical submission of application to RBI
- RBI examination, clarification, and grant of Certificate of Registration
Who Should Register an Asset Reconstruction Company?
- Financial institutions planning entry into stressed asset resolution
- Investors focusing on distressed debt opportunities
- NBFC groups expanding into asset reconstruction business
- Consortiums formed for professional NPA management