Mumbai (Maharashtra) [India], May 17 (ANI): The Reserve Bank of India (RBI) convened a conference today for the Directors and MD/CEOs of Asset Reconstruction Companies (ARCs) in Mumbai.
According to a press release, the event, themed ‘Governance in ARCs – Towards Effective Resolutions’, saw the participation of over 80 representatives from all 27 ARCs across the country.
This conference is part of a series of supervisory engagements the RBI has been conducting over the past year with its regulated entities, including previous meetings with the boards of Scheduled Commercial Banks and Urban Co-operative Banks.
The conference was graced by Deputy Governors M Rajeshwar Rao and Swaminathan J, alongside Executive Directors S C Murmu, Saurav Sinha, J K Dash, and Rohit Jain.
Other senior officials from the RBI’s Regulation and Supervision departments also attended, underscoring the importance of the event.
In his keynote address, Deputy Governor M Rajeshwar Rao emphasized the critical role of sound governance in ARCs. He pointed out that a strong governance framework is essential for ARCs to develop robust business models.
Rao highlighted the need for responsible conduct in recovery processes, urging ARCs to adhere to transparent and non-discriminatory practices as outlined in the comprehensive fair practice code (FPC) established by the RBI.
Deputy Governor Swaminathan J., in his address, stressed the importance of leadership in fostering a culture of integrity and ethical behavior.
He brought attention to various supervisory concerns regarding the functioning of ARCs and advocated for a “regulation plus” approach, which calls for adherence not only to the letter of regulations but also to their spirit.
Swaminathan urged ARC Boards to prioritize assurance functions such as risk management, compliance, and internal audit, which are vital for identifying and mitigating risks, ensuring regulatory compliance, and protecting the organization’s reputation.
The conference featured technical sessions led by Chief General Managers of the RBI, who discussed regulatory aspects and supervisory expectations in detail.
These sessions aimed to provide ARC leaders with deeper insights into the regulatory landscape and supervisory priorities.
The event concluded with an open house interactive session, where participants engaged directly with the RBI’s Executive Directors, addressing queries and sharing insights. (ANI)
