MUMBAI: The Reserve Financial institution of India on Monday directed asset reconstruction corporations (ARCs) to take away unrealised administration price from net-owned funds consistent with the implementation of the Ind AS accounting requirements.

The RBI famous that it has noticed that some ARCs have been recognising administration charges regardless that the price had not been realised for greater than 180 days.

“To deal with the prudential considerations arising from continued recognition of unrealised earnings, it has been determined that ARCs getting ready their monetary statements as per Ind AS, shall scale back unrealised administration price from internet owned funds whereas calculating the capital adequacy ratio,” the RBI famous.