Economics

Question 1

an ____ committee has issued suggestions on streamlining functioning of assest reconstruction companies (ARC)

Answer 1

rbi

Question 2

who is the head of this committee

Answer 2

former rbi exec director sudarshan sen

Question 3

Lenders could recover only about____ of the amount owed by borrowers in respect of stressed assets sold to ARCs in the 2004-2013 period.

Answer 3

14.29%

Question 4

data shows that 80% of recovery made through arc has been theough deployment of measures of reconstruction that do not lead to

Answer 4

revival of business

Question 5

Suggestion: The scope of _____ of the SARFAESI Act may be expanded to allow ARCs to acquire ‘financial assets’, for the purpose of reconstruction, not only from banks and ‘financial institutions’ but also from such entities as may be notified by the RBI.

Answer 5

Section 5

Under these proposed powers, the RBI may consider permitting ARCs to acquire financial assets from all regulated entities, including Alternative Investment Fund (AIFs), Foreign Portfolio Investors (FPIs),Asset Management Company (AMCs) making investment on behalf of Mutual Funds (MFs) and all Non-Banking Financial Companies (NBFCs).

Question 6

arcs are not permitted to do ____ activities, they can ony engage in reconstruction and securitization activities

Answer 6

lending

Question 7

whi regulates the ARCs

Answer 7

rbi

Question 8

arcs are set up under

Answer 8

sarfaesi act 2002

Question 9

ARCs are specialized financial institutions that buy ____ from banks and financial institution by paying a portion of cash - 15% upfront and issuing SRs for the remaining 85%

Answer 9

NPAs

security receipts

Question 10

it allows reconstruction activities without intervention of

Answer 10

courts

Question 11

ARCs are registered under section ____ of sarfaesi act 2002

Answer 11

2

Question 12

Nonperforming assets

Answer 12

Nonperforming assets (NPAs) are loans or advances towards which interest or principal payments haven’t been made in 90 days

Question 12

Nonperforming assets

Answer 12

Nonperforming assets (NPAs) are loans or advances towards which interest or principal payments haven’t been made in 90 days

Question 13

banks are supposed to classify NPAs into ____ categories

Answer 13

3

sub-standard assets, doubtful assets, and loss assets.

Question 14

sub standard asset

Answer 14

npa for less than or equal to 12 months

Question 15

doubtful asset

Answer 15

in the sub standard category for 12 months

Question 16

loss asset

Answer 16

loss has been identified by bank, internal/external auditors or rbi inspection. mostly uncollectible and of little value but there is still slight chance of recovery

Question 17

Sarfaesi Act

Answer 17

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

Question 18

when was the sarfaesi act passed and implemented

Answer 18

Enacted: 17 December 2002
Committee report: Narasimham Committee I and II and Andhyarujina Committee
Territorial extent: Whole of India
Commenced: 21 June 2002

Question 19

sarfasi act is

Answer 19

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 is an Indian law. It allows banks and other financial institution to auction residential or commercial properties of defaulters to recover loans.
Citation: Act no. 54 of 2002

Question 20

who recommended the setting up of asset reconstruction companies of funds

Answer 20

1991 m. narasimham panel

former rbi governor

Question 21

rbi first released a set of norms to classify NPAs in

Answer 21

october 1990

Question 22

when was the first arc set up

Answer 22

ARCs would be registered and regulated by RBI. Accordingly, initial guidelines were issued by RBI in April 2003. The first ARC, namely, Asset Reconstruction Company (India) Limited, was also registered in 2003.

Question 23

how many arc’s are currently in practice and which big corporation has filed for application for setting up an ARC

Answer 23

As on date, there are 28 ARCs in operation.02-Nov-2021

Adani Group

Question 24

the government has proposed _____ for the cleaning of books of PSBs or public sector banks

Answer 24

national asset reconstruction company ltd (narcl)

Question 25

Section 13: sarfasi act

Answer 25

Enforcement of security interest.

Question 26

security interest under sarfaesi

Answer 26

Defining ‘security interest’ to be any type of security including mortgage and change on immovable properties given for due repayment of any financial assistance given by any bank or financial institution.
What is meant by enforcement of security interest?
Security interest is an enforceable legal claim or lien on collateral that has been pledged, usually to obtain a loan. The borrower provides the lender with a security interest in certain assets, which gives the lender the right to repossess all or part of the property if the borrower stops making loan payments.

Question 27

BIFR - Board for Industrial and Financial Reconstruction

Answer 27

The Board for Industrial and Financial Reconstruction was an agency of the Government of India, part of the Department of Financial Services of the Ministry of Finance to deal with the sickness of iductrial companies, when it was shut down all of its proceedings were transferred to NCLT and NCLAT under IBC.
Founded: 1987
Purpose: Sick company remedies
Dissolved: 30 November 2016
Parent organisation: Ministry of Finance
Legal status: Statutory