RBI Approval & End-to-End Advisory by N D Savla & Associates

Setting up an Asset Reconstruction Company is not a routine licensing exercise. ARCs operate at the heart of stressed asset resolution and fall under close RBI supervision. The capital threshold is high, the scrutiny is deeper, and the expectations around governance are uncompromising.

At N D Savla & Associates, we help sponsors register ARCs with a clear regulatory strategy. Structured for approval. Built for long-term compliance.

What Is an Asset Reconstruction Company?

An ARC is a financial institution registered with the Reserve Bank of India under the SARFAESI Act, 2002. Its primary role is to acquire non-performing assets from banks and financial institutions and resolve them through restructuring, recovery, or sale.

Because ARCs deal with stressed assets and public-sector exposures, RBI evaluates not just documents, but sponsor credibility, capital strength, and resolution capability.

Eligibility Criteria for ARC Registration

Before applying, the applicant must meet key RBI conditions, including:

• Company incorporated under the Companies Act, 2013

• Minimum owned fund of ₹300 crore

• Sponsors with strong financial standing and clean regulatory track record

• Clear business model for asset reconstruction and resolution

• Robust governance, risk management, and compliance framework

We assess feasibility upfront so the application is approval-ready.

Our ARC Registration Services

1. Pre-Application Feasibility Review

We begin with a detailed assessment of:

• Sponsor background and financial strength

• Capital structure and source of funds

• Proposed ARC strategy and asset focus

• Regulatory readiness

This step prevents costly misalignment later.

2. Entity Structuring & Capital Planning

We assist with:

• Incorporation and shareholding structure

• Capital infusion planning to meet RBI norms

• Board and management composition

• Alignment with RBI fit-and-proper criteria

ARC structuring must withstand regulatory and market scrutiny.

3. Documentation & Policy Framework

We prepare and review:

• Comprehensive business plan and projections

• Asset acquisition and resolution policy

• Risk management and compliance framework

• Governance policies and disclosures

Every document is customised. No off-the-shelf templates.

4. RBI Application & Approval Process

We handle:

• Filing of ARC application with RBI

• Submission of supporting documents

• Response to RBI queries and clarifications

• Continuous follow-up until registration

Precision and responsiveness drive outcomes here.

5. Post-Registration Compliance Setup

After approval, we support:

• RBI reporting and disclosure framework

• Compliance calendar and internal controls

• Audit coordination and inspection readiness

• Ongoing advisory on regulatory changes

Registration is the start. Compliance keeps the license intact.

Who Should Consider ARC Registration?

• Financial institutions entering stressed asset resolution

• Investor groups focusing on NPA acquisition

• Funds planning a regulated ARC platform

• Sponsors with long-term recovery strategy

ARC registration suits serious, well-capitalised players.

Why Choose N D Savla & Associates?

ARC advisory requires judgment and regulatory depth.

• Experience with RBI-regulated entities

• Clear understanding of SARFAESI and ARC norms

• Structured, approval-focused approach

• Single-point accountability from planning to license

• Practical guidance beyond documentation

We don’t just aim for approval. We prepare you for operations.