CURRENT AFFAIRS

Detailed explanation-1: -The committee, headed by Sudarshan Sen, former Executive Director, RBI, will review existing legal and regulatory framework applicable to ARCs and recommend measures to improve efficacy of ARCs.

Detailed explanation-2: -To improve the performance of ARCs, the RBI had appointed the committee (headed by Sudarshan Sen) to examine the issues and recommend measures for enabling ARCs to meet the growing requirements of the financial sector.

Detailed explanation-3: -The committee, headed by former RBI Executive Director Sudarshan Sen, suggested that the scope of Section 5 of the SARFAESI Act be expanded to permit ARCs to acquire financial assets from all regulated entities, including AIFs, FPIs, AMCs making investment on behalf of MFs and all NBFCs including HFCs.

Detailed explanation-4: -RBI had announced its intent to review the working of ARCs on 7 April, as part of its announcements following the monetary policy committee (MPC) decision. “Asset reconstruction companies play an important role in the resolution of stressed assets.

Detailed explanation-5: -Shri Natarajan Sundar is the Managing Director & Chief Executive Officer (MD & CEO) of NARCL. Mr. Sundar is a veteran banker and had an extensive experience at State Bank of India (SBI). During his stint at SBI, Mr.