RBI removes ₹1000cr net owned funds rule for co-resolution applicants

Business Sep 17, 2026

The Reserve Bank of India just made it easier for smaller asset reconstruction companies (ARCs) to get involved in bankruptcy cases.

Now, these ARCs do not need to have ₹1,000 crore in net owned funds to join as co-resolution applicants.

They can team up with investors and help buy troubled assets under the Insolvency and Bankruptcy Code (IBC).

This update dropped last weekend.

Smaller arcs can now participate

Until now, only a handful of the 27 ARCs could actually take part because of strict financial rules.

With this change, more ARCs, especially the smaller ones, can pitch in on resolving bankruptcies.