Economy
2019
Banking in India
RBI and Functions
What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?
C.To act as independent regulator in case of applications for loans of Rs. 50 crore or more
B.To support the infrastructure projects of Central and State Governments
D.To aim at faster resolution of stressed assets of Rs. 50 crore or more which are-under consortium lending
A.To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit
Correct Answer: Option D
The Inter-Creditor Agreement (ICA) was aimed at the faster resolution of stressed assets (bad loans) of ₹50 crore or more that fall under consortium lending arrangements.
It was a part of the 'Sashakt' plan, which was approved by the government to address the issue of resolving Non-Performing Assets (NPAs).
Therefore, option d is the correct answer.
Sources:
More Economy Questions
Which one of the following is the main objective of the ‘Make in India’ initiative?Economy · 2015With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instrum...Economy · 2024In the context of any country, which one of the following would be considered as part of its social ...Economy · 2019Which one of the following is likely to be the most inflationary in its effects?Economy · 2021With reference to the Indian economy, consider the following statements:Economy · 2022