The '4R' strategy, articulated in the Economic Survey to address the Twin Balance Sheet problem in the Indian banking sector, stands for:
- Reduce, Restructure, Recapitalize, and Reform
- Recognize, Recapitalize, Resolve, and Reform
- Regulate, Restrict, Recover, and Reinvest
- Review, Revoke, Reissue, and Restructure
Answer: Recognize, Recapitalize, Resolve, and Reform
To cure the banking sector's NPA crisis, the government adopted the 4R strategy: Recognize the true extent of bad loans (via Asset Quality Reviews), Recapitalize the public sector banks to meet capital adequacy norms, Resolve the stressed assets through the Insolvency and Bankruptcy Code (IBC), and Reform the banking governance structure to prevent future reckless lending.