FAQs - All you wanted to know about ARCs

https://rbidocs.rbi.org.in/rdocs/faqs/PDFs/NBCARC11092026SP13269333FLS333.PDF

ARCs are registered under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as the SARFAESI Act) and regulated using the powers vested with the Reserve Bank thereunder. In terms of paragraph 52 of the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025, dated November 28, 2025, ARCs are exempted from Sections 45IA, 45IB, and 45IC of the RBI Act, 1934. Further, paragraph 57 of the Directions ibid exempts ARCs from the applicability of the Directions ibid (except Chapter IV, wherein these exemptions are specified), the Reserve Bank of India (Non-Banking Financial Companies – Acceptance of Public Deposits) Directions, 2025, and other Master Directions issued to NBFCs specified thereunder. In view of the aforesaid exemptions, ARCs are not considered a class/ category of NBFC, and as such, guidelines issued for NBFCs are not applicable to ARCs unless specifically addressed to ARCs and issued using the powers vested with the Reserve Bank under the provisions of the SARFAESI Act