Which institution in India is responsible for granting licenses to asset reconstruction companies (ARCs) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002?

💡 Solution & Explanation

The Reserve Bank of India holds the statutory authority to grant certificates of registration to Asset Reconstruction Companies under Section 3 of the SARFAESI Act of 2002. ARCs play a pivotal role in purchasing non-performing assets from banks and financial institutions to clean up balance sheets. They operate under rigorous regulatory oversight maintained by the central bank.