Company registered under the company act 2013 for the purpose of securitization & get registration from RBI as per SARFAESI act under section 3 is called as Asset Reconstruction Company (ARC). The main business of asset Reconstruction Company is to buying bad loan from bank. These are specialized financial institution that buys the bad loan, Non Performing Assets (NPAs) from banks & financial institution so that to clean up their balance sheet.It act as recovery agent for the banks as it take over the loan and advances from bank and financial institution for recovery.
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