![RBI has released Master Direction to the Asset Reconstruction Companies RBI has released Master Direction to the Asset Reconstruction Companies](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYtu6WuJBNvYOvKpjR3bSTDwioJ2PwyV27ygTHxeG_oFdQyHvwV9sHLM3kLNnrzElvFileT4mJAc9w1lc6VivQz2dD0YYRNSZJvgc8V7vVaOShi3fWE53SUOPuRymMSVuuGJzOTI9a0fjmrcuuY4kyFmvaET__eddEWDbJAjUUE4jB_uHagw60iSzvDuVA/w320-h192-rw/Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Untitled%20(500%20%C3%97%20300%20px)%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(2).png)
- The Master Direction provides comprehensive guidelines and instructions for ARCs.
- It covers various aspects such as registration, net owned fund, permissible business, asset reconstruction, securitisation, capital adequacy requirements, deployment of funds, asset classification, investments, income recognition, and more.
- One of the significant changes is the increase in the minimum capital requirement for ARCs.
- It has been raised to Rs 300 crore, compared to Rs 100 crore as on October 11, 2022.
- This is a substantial increase and is likely to have significant implications for the operations of ARCs.
Question:
Q.1 What is the new minimum capital requirement for ARCs as per the new Master Direction?a. Rs 100 crore
b. Rs 200 crore
c. Rs 300 crore
d. Rs 400 crore