UPSC Prelims 2019 Economy

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

Explanation

The Inter-Creditor Agreement (ICA) signed by Indian banks and financial institutions is a mechanism to expedite the resolution of stressed assets, particularly in cases of consortium lending involving loans of Rs. 50 crore or more.

Linked concepts

Revision pages for syllabus ideas tested in this PYQ.

Bank Fraud & Non-Performing Assets (NPAs)

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