UPSC Previous Year Question | Prelims GS | 2019

What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

  1. To lessen the Government of India's perennial burden of fiscal deficit and current account deficit
  2. To support the infrastructure projects of Central and State Governments
  3. To act as independent regulator in case of applications for loans of Rs. 50 crore or more
  4. To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

Answer

Correct Answer

To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

Explanation

The Inter-Creditor Agreement (part of the Sunil Mehta committee's 'Project Sashakt' framework) aims at faster resolution of stressed assets of Rs. 50 crore or more under consortium lending.

Topics: banking, indian economy, inter-creditor agreement (project sashakt), npas and stressed assets