The Reserve Bank of India has come up with some uniform accounting rules for asset reconstruction companies or ARCs probably to stop them inflating short term profits.In the wake of deteriorating credit quality, banks have of late started selling bad loans to ARCs, which acquire them from lenders and try recovering pending dues from defaulting borrowers. In between companies earn commissions. Such transactions can take place in a combination of security receipts or SRs and cash.

Source - http://economictimes.indiatimes.com