Do the lenders need to have a policy in relation to transfer of assets to ARC? What are the key components of such a policy?
The RBI guidelines to Banks/ FIs on sale of assets to ARCs state that Banks/ FIs, which propose to sell their financial assets to Asset Reconstruction Company (ARC) should ensure the prudence of sale and the said sale of assets to be in accordance with a policy approved by the Board. The Board shall lay down policies and guidelines covering, the following issues, • Financial assets to be sold; • Norms and procedure for sale of such financial assets; • Valuation procedure to be followed to ensure that the realisable value of financial assets is reasonably estimated; and • Delegation of powers of various functionaries for taking decision on the sale of the financial assets; etc.
Related Questions
- What are the key components my service needs to include in our process documents in relation to blue card, exemption care and suitability processes?
- Do the lenders need to have a policy in relation to transfer of assets to ARC? What are the key components of such a policy?
- What are the key components of an academic scheduling policy?
