BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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SEBI
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RBI
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Company Law Board
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SIDBI
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Detailed explanation-1: -ARCs are currently not permitted to commence or carry on any business other than that of securitisation or asset reconstruction or the business referred to in Section 10(1) of the SARFAESI Act without prior approval of the Reserve Bank of India.
Detailed explanation-2: -Asset Reconstruction Companies are registered under the RBI and regulated by the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act 2002).
Detailed explanation-3: -The RBI is a regulator of banks but is also the dominant owner of the largest commercial bank. Such close links were considered essential for effective coordination in financial sector as part of the early endeavours of planned development and the channeling of credit.
Detailed explanation-4: -As of May 31, 2021, there are 28 Asset Reconstruction Companies that have been registered under the Reserve Bank of India. For the latest exam updates, study material and tips for IAS preparation, visit BYJU’S.