Mumbai, April 24 -- The Reserve Bank of India (RBI) has issued Master Direction to the Asset Reconstruction Companies.

An Asset Reconstruction Company (ARC) is a financial institution that buys the Non Performing Assests (NPA) or bad assets from banks and financial institutions so that the latter can clean up their balance sheets.

"ARCs play a critical role in the resolution of stressed financial assets of banks and financial institutions, thereby enhancing the overall health of the financial system. To ensure prudent and efficient functioning of ARCs and to protect the interest of investors, Reserve Bank of India hereby issues the Master Direction - Reserve Bank of India (Asset Reconstruction companies) Directions, 2024" said a realese...