An asset reconstruction company, also known as ARC, is one of those financial institutions that look after the losses of other financial institutions, especially the banks. Many borrowers come to the bank to ask for financial aid or a sum and against it, they pledge on securities or collaterals like their house or a car and so on. The securities act as deposits so that if the borrower fails to repay the bank in the due time then the securities will be ceased by the banks and liquidated to realize the banks' dues.