MDs, CEOs of ARCs can't have more than 3 terms in office without a cool-off

RBI allows ARCs to bid for assets in IBC cases

The Reserve Bank of India (RBI) on Tuesday said managing directors (MDs) and chief executive officers (CEOs) of asset reconstruction companies (ARCs) cannot have more than three terms in office, with each term not exceeding five years. In addition, the retirement age of CEOs has been brought on a level pegging with CEOs of private banks, which is 70 years.

Apart from enhancing governance norms, ARCs have been allowed to become resolution applicants (RSa) in bankruptcy proceedings — they can bid for assets in Insolvency and Bankruptcy Code (IBC) cases.

The new norms for ARCs in India was announced after