J&K Finance Minister Dr Haseeb Darbu Wednesday announced the creation of a state subject institution – the Asset Reconstruction Company (ARC).
He was delivering his budget speech in the state legislative assembly.
ARC will be mandated to buy the impaired assets of state subjects that are mortgaged to financial institutions. These will include some of the assets of the commercial banks as well of other financial institutions like the State Finance Corporation.
The creation of ARC is being considered importance after new banking law SARFAESI which gives banks a right to take-over the collaterals even in J&K.