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Which committee was formed to look into the NPA (Non-Performing Assets) and recommended the Inter creditor agreement?
  • a)
    Saksham Committee
  • b)
    Sashakt Committee
  • c)
    Shakti Committee
  • d)
    Shanti Committee
  • e)
    None of the Above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which committee was formed to look into the NPA (Non-Performing Asset...
Sunil Mehta, a non-executive chairman of Punjab National Bank , was the head of Sashakt Committee.
  • The government had constituted a committee led by Sunil Mehta to resolve the issue of NPAs.
  • Sunil Mehta said the new RBI direction making the Inter-Creditor Agreement (ICA) framework mandatory is a move in the right direction for resolution of non-performing assets (NPAs or bad loans).
  • Sashakt panel has recommended that bad loans of up to Rs 50 crore will be managed at the bank level, with a deadline of 90 days.
  • For bad loans of Rs 50-500 crore, banks will enter into an ICA, authorising the lead bank to implement a resolution plan in 180 days or refer the case to the National Company Law Tribunal (NCLT).
  • The Sashkat ICA can be modified to incorporate the requirements of the new framework and serve as the Master Inter-Creditor Agreement for resolution of all stressed asset under BLRA (Bank Led Resolution Approach).
Hence, the correct option is (B).
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Which committee was formed to look into the NPA (Non-Performing Assets) and recommended the Inter creditor agreement?a)Saksham Committeeb)Sashakt Committeec)Shakti Committeed)Shanti Committeee)None of the AboveCorrect answer is option 'B'. Can you explain this answer?
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