JKSSB Sub Inspector 2022 Q35 solved answer

JKSSB Sub Inspector - Current Affairs - 2022

View full paper: JK PSI 2022

Question

In September 2021, the government has set up an asset management company that will work in tandem with the National Asset Reconstruction Company Ltd (NARCL) to clean up bad loans. Identify the name of this bank.

  1. A. India Infrastructure Finance Company Limited
  2. B. National Debt Reconstruction Corporation Limited
  3. C. India Debt Resolution Company Limited
  4. D. State Debt Resolution Company Limited

Answer

Correct option: C - India Debt Resolution Company Limited

The India Debt Resolution Company Ltd (IDRCL) was set up by the Government of India to work alongside the National Asset Reconstruction Company Ltd (NARCL) in resolving stressed assets (bad loans) of banks. NARCL acquires the bad loans from banks, while IDRCL manages and resolves them by finding buyers or restructuring. Together, they form a "bad bank" structure aimed at cleaning up the non-performing assets (NPAs) in India's banking sector.