RBI eases norms for ARCs, streamlines borrower dues settlement process

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The guidelines also mandate that the Net Present Value (NPV) of the settlement amount should generally not be less than the realisable value of securities.

He added that the updated norms provide special dispensation for small loans with principal outstanding below Rs 1 crore, making the process more practical.

The new norms stipulate that the committee must be chaired by an independent director and include at least two independent directors, including the chair.

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Category: BusinessFinance

Markets: India

Topics: Small loan settlement RBI ARC rules RBI guidelines Board-approved settlement policy Revised ARC guidelines Asset reconstruction companies NPV in loan settlement RBI asset recovery Borrower dues settlement ARCs settlement norms Financial sector regulations Independent Advisory Committee ARC board policies ARC borrower dues Loan recovery norms

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News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-01-20 @ 19:56:48 (4 hours ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 450 words

Reading Time: 3 minutes read

Sentences: 19 lines

Sentence Length: 24 words per sentence (average)

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Copyright Owner: © Business Standard

News ID: 25286762

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