Shri Swaminathan, Deputy Governor, Reserve Bank of India recently delivered a speech at the Conference of Asset Reconstruction Companies (ARCs) held at Mumbai. Which of the following statements about Asset Reconstruction Companies (ARCs) is correct?
1
ARCs primarily serve as investment vehicles for foreign investors to enter the Indian banking sector.
2
ARCs are set up to assist banks by taking over high-value Non-Performing Assets (NPAs) and allowing banks to focus on their regular activities.
3
ARCs are regulatory bodies established by the Reserve Bank of India to oversee the governance practices of banks.
4
The main function of ARCs is to provide loans to small and medium enterprises (SMEs).
5
ARCs are only responsible for the recovery of loans given to government-owned entities.