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Asset Recovery



Asset Reconstruction Company


The word "asset reconstruction" in India owes its origin to Narsimham I which envisaged the setting up of a central Asset Reconstruction Fund with money contributed by the Central Government, which was to be used by banks to shore up their balance sheets to clean up their non-performing loans. This idea never worked: so Narsimham II thought of asset reconstruction companies, the likes of which had already been successful in Malaysia, Korea and several other countries in the World. To keep in tune with the original idea of asset reconstruction fund, and also to give an impression that ARCs are not merely concerned with realization of bad loans but try and resurrect bad loans into good ones, the word ARC has been used in India.  more..


Debt Recovery Tribunal


As the banks and other financial institutions were finding it difficult to realize their monies from the defaulting borrowers, the Government of India has constituted what are known as Debt Recovery Tribunals under a special law in the parliament known as The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 also known as the RDDBFI Act or RDB Act is aimed at helping Banks, Financial Institutions and State Financial Corporations to recover their dues quickly.  more..


Asset Reconstruction Company


The word "asset reconstruction" in India owes its origin to Narsimham I which envisaged the setting up of a central Asset Reconstruction Fund with money contributed by the Central Government, which was to be used by banks to shore up their balance sheets to clean up their non-performing loans. This idea never worked: so Narsimham II thought of asset reconstruction companies, the likes of which had already been successful in Malaysia, Korea and several other countries in the World. To keep in tune with the original idea of asset reconstruction fund, and also to give an impression that ARCs are not merely concerned with realization of bad loans but try and resurrect bad loans into good ones, the word ARC has been used in India. more..