For Borrowers

ARCs buy NPAs from banks/FIs either through auction route or on bilateral basis.
ARCs also fund approved OTS (One Time Settlement) amounts of borrowers, provided the corresponding debts are assigned to the ARCs by the banks/FIs.
In cases where the accounts have become NPA for reasons beyond the control of the borrower, ARCs can examine and explore chances of revival through any of the following permitted options:
  • Restructuring/rescheduling of the debt
  • Sale of non-core assets so as to reduce debt burden
  • Conversion of any portion of debt into shares of the borrower company
  • Financial support through addional funding by the ARC or a strategic investor
  • Providing expert financial, technical and other advisory services

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