Create a custom practice set
Pick category, difficulty, number of questions, and time limit. Start instantly with your own quiz.
Generate QuizThe 'Bad Bank' or the National Asset Reconstruction Company Ltd (NARCL), set up to aggregate and resolve bad loans from Indian banks, is backed by government guarantees and works in tandem with the ___ for the actual management and recovery of these stressed assets.
- Veblen
- IDRCL (or India Debt Resolution Company Ltd)
- Total receipts excluding borrowings
- 2003
Answer: IDRCL (or India Debt Resolution Company Ltd)
The NARCL is designed to acquire the stressed assets from banks by issuing Security Receipts (SRs). However, the NARCL acts primarily as an aggregator. The actual operational work of managing these bad assets, formulating resolution plans, and executing recoveries is outsourced to the IDRCL, which is majority-owned and managed by private sector professionals.