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    Question

    The Asset Reconstruction Companies (ARCs) in India are

    established as per the provision of which among the following?
    A Banking Regulation Act 1949 Correct Answer Incorrect Answer
    B Reserve Bank of India Act 1934 Correct Answer Incorrect Answer
    C Negotiable Instruments Act 1881 Correct Answer Incorrect Answer
    D SARFAESI Act 2002 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The Asset Reconstruction Companies (ARCs) are formed as per the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002. Any loan with an outstanding amount of Rs 1 lakh or more will come under the purview of ARCs. RBI has the authority to issue licenses to such companies. Asset Reconstruction Company of India Limited (ARCIL) is the first asset reconstruction company in India.

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