The Reserve Bank of India convened a conference in Mumbai on Friday, gathering directors and MD/CEOs from Asset Reconstruction Companies (ARCs). Deputy Governors M. Rajeshwar Rao and Swaminathan J. addressed the participants during the event.
In his keynote speech, M. Rajeshwar Rao underscored the pivotal role of sound governance in establishing a robust foundation for ARCs to develop a resilient business model. He emphasized that the responsibility primarily lies with the Boards of the ARCs and top executives to foster a strong institutional culture based on these principles. Additionally, he highlighted the importance of responsible conduct in the recovery process, urging ARCs to adhere to transparent and non-discriminatory practices aligned with the comprehensive fair practice code (FPC) instituted by the Reserve Bank.
The conference witnessed the participation of over 80 attendees representing all 27 ARCs.
Deputy Governor Swaminathan emphasized the significance of setting the right tone from the top to nurture a culture of integrity and ethical conduct. He raised supervisory concerns regarding the functioning of ARCs and urged them to adopt a regulatory plus approach, ensuring compliance with both the letter and the spirit of regulations. Swaminathan stressed the importance of assurance functions, such as risk management, compliance, and internal audit, in identifying and mitigating risks, ensuring legal compliance, and safeguarding the organization’s reputation.
The event, themed ‘Governance in ARCs – Towards Effective Resolutions’, is part of the Reserve Bank’s ongoing series of supervisory engagements with its regulated entities over the past year. Technical sessions on regulatory aspects and supervisory expectations were conducted by Chief General Managers of the Reserve Bank.
The conference concluded with an interactive session where participants engaged with Executive Directors of the Reserve Bank, including S C Murmu, Saurav Sinha, J K Dash, and Rohit Jain, along with other senior officials from the Regulation and Supervision departments.
