RBI calls for transparent, non-discriminatory practices in recovery process at meeting with ARCs

Reserve Bank of India

The Reserve Bank of India’s (RBI) Deputy Governor M. Rajeshwar Rao on May 17 called for transparent and non-discriminatory practices in recovery process at a meeting with representatives of Asset Reconstruction Companies (ARC).

“He also stressed on the need for responsible conduct in recovery process and emphasised that ARCs should follow transparent and non-discriminatory practices in line with the comprehensive fair practice code (FPC) put in place by the Reserve Bank,” Rao said during Conference in Mumbai conducted by RBI on May 17.

The conference was attended by over 80 participants representing all 27 ARCs, RBI said in a release.

The attendees included deputy governors M. Rajeshwar Rao, Swaminathan J., Executive Directors S C Murmu, Saurav Sinha, J K Dash, and Rohit Jain along with other senior officials representing Regulation and Supervision departments of the Reserve Bank.

Swaminathan urged the ARCs to adopt a regulation plus approach where there is compliance with both the letter of the regulation and also its spirit.

“Boards should accord due importance to assurance functions, namely, risk management, compliance and internal audit. These functions play a critical role in identifying and mitigating risks, ensuring compliance with laws and regulations as well as safeguarding the organization's reputation,” Swaninathan said.