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The Master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024 (updated as on April 23, 2025) provides a comprehensive regulatory framework for Asset Reconstruction Companies (ARCs) to ensure fairness, transparency, and accountability in their operations. It outlines guidelines on asset acquisition, management takeover, provisioning norms, and governance standards to strengthen the resolution of stressed assets and protect stakeholder interests .

These directions aim to enhance the efficiency and effectiveness of ARCs in the financial system by promoting prudent practices and aligning their operations with the broader objectives of financial stability and creditor protection.