It said banks supply non performing assets (NPAs) to the ARCs, hold shareholding in these entities and also lend to them, which makes it necessary to monitor if there is a "circuitous movement of funds between banks and these institutions (ARCs)".source https://economictimes.indiatimes.com/industry/banking/finance/banking/introduction-of-bad-bank-can-make-existing-arcs-more-effective-rbi-paper/articleshow/82263128.cms
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