Master Circular for Asset Reconstruction Companies
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2023-24/12 · issued 03 Apr 2023 · ~1 min read
Quick answerRBI consolidated all ARC guidelines into a single master circular as of March 31, 2023, covering registration, capital adequacy, asset classification, and governance. ARCs must comply with Ind AS from FY2019-20 and follow updated definitions and reporting norms.
What changed
RBI issued a master circular consolidating all existing instructions for Asset Reconstruction Companies (ARCs) as of March 31, 2023. It updates the 2003 guidelines and guidance notes, incorporating Ind AS requirements for financial statements from FY2019-20. The circular also revises definitions and reporting obligations.
What it means for you
ARCs now have a single reference document for compliance, reducing ambiguity. The inclusion of Ind AS ensures standardized financial reporting, aiding supervision. Banks dealing with ARCs can expect more consistent asset valuation and disclosure practices, impacting loan recovery and securitization processes.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review the master circular to align ARC operations with updated definitions and capital adequacy norms.
Ensure ARCs comply with Ind AS for financial statements from FY2019-20 as per RBI circular DOR (NBFC).CC.PD.No.109/22.10.106/2019-20.
Update internal audit and reporting systems to meet the consolidated disclosure and quarterly submission requirements.
Verify that ARC management changes and share transfers adhere to the fit and proper criteria and prior approval norms.
Who it affects
Asset Reconstruction Companies registered with RBI, Banks and financial institutions dealing with ARCs, Sponsors and investors in ARCs, Credit Information Companies and Information Utilities
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 04:49 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the effective date of this master circular?
The circular is dated April 3, 2023, and consolidates instructions updated as of March 31, 2023.
Does this circular apply to all ARCs?
Yes, it applies to all ARCs registered under Section 3 of the SARFAESI Act, 2002, with certain exemptions for trusts as specified in paragraph 7.
What are the key reporting requirements for ARCs?
ARCs must submit quarterly statements, audited balance sheets, data to credit information companies, and file transactions with the Central Registry and Information Utilities.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/12
DOR.SIG.FIN.REC 8/26.03.001/2023-24
April 03, 2023
All Asset Reconstruction Companies
Dear Sir/Madam,
Master Circular - Asset Reconstruction Companies
In order to have all current instructions/ guidelines on the subject at one place, the Reserve Bank of India issues updated circulars/ guidelines . The instructions contained in The Asset Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003 (vide Notification No. DNBS.2/CGM(CSM)-2003, dated April 23, 2003 ) together with Guidance Notes updated as on March 31, 2023 are reproduced below.
Yours faithfully,
(J P Sharma)
Chief General Manager
Table of Contents
Paragraph No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/12 · issued 03 Apr 2023. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12484&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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