‘Concerns over ARCs fronting for defaulters’


MUMBAI: RBI deputy governor M Rajeshwar Rao has raised considerations of asset reconstruction corporations fronting for defaulters in buying companies. Rao additionally known as upon ARCs to herald sufficient of their very own capital to have ‘pores and skin within the sport’.
This is the second time {that a} senior central banker has hauled up ARCs. Earlier this month, deputy governor Swaminathan J had stated that ARCs have been discovered to behave as a conduit for ‘evergreening’ of unhealthy loans.Rao was talking at a convention on Governance in ARCs in Mumbai. “There are concerns relating to the ARC route becoming a vehicle for entry of the ‘tainted’ promoters, who in the first place were responsible for the default of the underlying entity,” stated Rao.

Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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