"More and more banks are embarking on forming of Asset Reconstruction Companies such that they can manage their risks better and can concentrate on lending". Explain the salient features and functions of an Asset Reconst

It may not be straight yes or no because many banks and financial institutions do have Recovery Cells in addition to Asset Recovery Companies (ARC) to tackle menace of non-performing assets (NPAs). 21st Century gave recognition to outstanding loans with banks and financial institutions upgrading assets to tradeable asset. Doubtful and bad loans have to be termed as NPA as per RBI mandate that make Balance Sheets look dirty. ARC is a company registered with Reserve Bank of India under section 3 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for the purposes of carrying on the business of asset reconstruction or securitisation, or both. ARC buys NPAs, obviously discounted, to make bank balance sheet cleaner and encourage them to use their time, energy and funds for development. ARC can mix acquired good and bad assets to make them saleable. Practically, ARC acts as an agent for any bank or financial institution for the purpose of recovering their dues, mange borrower's assets, act as Receiver and other ancillary business exclusively.