What Is the Full Form of ARCIL in Banking?

The Full Form of ‘ARCIL’ in Banking is ‘Asset Reconstruction Company of India Limited’.

Full Form of ARCIL

Asset Reconstruction Company of India Limited (ARCIL) is a leading asset reconstruction company in India. It is an independent, professionally managed and non-banking finance company registered with the Reserve Bank of India (RBI).

The main purpose of ARCIL is to help banks and financial institutions in recovering their bad loans by taking over their non-performing assets (NPAs) at a discounted price. ARCIL also offers debt recovery services, securitization and other services related to asset management. It is one of the top players in the Indian banking sector for managing NPAs.

ARCIL was established in 2003 as a joint venture between IDBI Bank, ICICI Bank and ICICI Venture Funds Management Company Limited. The primary objective of this venture was to set up a specialized institution for solving the problem of bad debts or NPAs that had become a major challenge for the banking sector at that time.

In its operations, ARCIL purchases Non-Performing Assets (NPA) from banks at a discount rate determined by them depending on the nature and size of the NPA. After purchasing these NPAs, it converts them into income generating assets through various measures such as taking legal action against defaulters, selling off collateral security, restructuring loan terms etc. This helps banks and financial institutions recover their losses while providing much needed liquidity to businesses that are facing difficulties due to their unpaid loans.

ARCIL has been successful in helping many banks and financial institutions reduce their NPA portfolio significantly since its inception. Its success can be attributed to its expert team which consists of experienced professionals from both banking and non-banking fields. Their expertise enables them to identify opportunities for resolution quickly and efficiently which helps banks recover their dues without having to go through lengthy legal proceedings or waiting for long periods before any recovery can be made.

Apart from helping banks recover their dues, ARCIL also offers value added services such as asset valuation & monetization services whereby it helps companies maximize returns on investments made in unproductive assets like real estate or stocks etc., while still ensuring compliance with regulatory requirements such as SEBI guidelines etc. This helps both companies as well as investors realize value from their investments even if they are not performing well currently due to certain market conditions or other factors beyond their control.

Thus, Asset Reconstruction Company of India Limited (ARCIL) has emerged as an important player in the Indian banking sector by providing effective solutions for recovering bad debts and offering value added services that help improve overall efficiency across industry sectors including banking, finance and other areas where capital is required for growth & development purposes.

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