Question
Which of the following is an entity that essentially
helps banks to transfer the credit risk by buying their bad debts at mutually agreed value?Solution
An Asset Reconstruction Company is a specialized financial institution that buys the NPAs or bad assets from banks and financial institutions so that the banks can clean up their balance sheets. This helps banks to concentrate in normal banking activities. Banks rather than going after the defaulters by wasting their time and effort, can sell the bad assets to the ARCs at a mutually agreed value. Â In the Budget 2021-22, the government has proposed setting up of an asset reconstruction company to clean up non-performing assets in the banking sector. Following this, in September 2021, National Asset Reconstruction Company Limited (NARCL or bad bank) was established and applied to RBI for license as an Asset Reconstruction Company (ARC) . NARCL has been set up by banks to aggregate and consolidate stressed assets for their subsequent resolution. PSBs will maintain 51% ownership in NARCL. SBI, Union Bank of India and Indian Bank have 13.27% stake each in NARCL while PNB has 12% stake. Â In January 2022, NARCL received all approvals to commence operations and a total of 38 NPA accounts worth Rs.82845 crore have been identified for transfer to NARCL. This transfer will happen in a phased manner with banks agreeing to transfer 15 NPA accounts worth Rs.50,000 crore in Phase 1 by March 2022. NARCL intends to acquire these through 15% Cash and 85% in Security Receipts (SRs). Â The Union Cabinet approved Central Government guarantee up to Rs 30,600 crore to back Security Receipts to be issued by National Asset Reconstruction Company Limited.
Sex chromosomes are chromosomes that carry the genes that determine the sex of an individual. Sex Chromosomes are also known as:-
___________is an ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity
The most popular grape variety in India is
The site of protein synthesis is Ribosomes and The Ribosomes attached to the surface of Endoplasmic Reticulum is termed as
The presence of Escherichia coli in water in high amount is a strong indication of
Which non-reducing disaccharide is hydrolysable by acids to glucose with difficulty and is stored as a reserve food supply in an insect's hemolymph?
Sour taste of leave of gram is due to presence of
Which of the following is a ‘P’ solubilizing bacteria?
Water required to meet the demands of evapotranspiration (ET) and the metabolic activities of the plants together known as
Alternaria blight disease can be effectively controlled by