UPSC Exam > UPSC Questions > Consider the following statements about the ...
Start Learning for Free
Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’:
It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks.
The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders.
It has a provision of a government guarantee that sets it apart from any other asset reconstruction company.
Which of the statements given above is/are correct?
- a)1 only
- b)1 and 2 only
- c)2 and 3 only
- d)1 and 3 only
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following statements about the ‘National Asset Reconstru...
Option d is the correct answer.
- Recently, the Cabinet has cleared a ₹30,600-crore guarantee programme for securities to be issued by the National Asset Reconstruction Company Limited (NARCL) for taking over and resolving non- performing assets (NPAs).
- Statement 1 is correct: National Asset Reconstruction Company Limited (NARCL) is India’s first-ever “Bad Bank”. It has been incorporated as an Asset Reconstruction Company (ARC) under the Companies Act of 2013. A bad bank is an asset reconstruction company (ARC), involved in the management and recovery of bad loans or NPAs of other banks.
- Statement 2 is incorrect: National Asset Reconstruction Company Limited has been set up to acquire and consolidate stressed assets for their subsequent resolution. Public Sector Banks (not RBI) will maintain 51% ownership in the NARCL and private lenders will hold the rest. India Debt Resolution Company Ltd (IDRCL) is an operational entity of NARCL. It will manage the stressed assets acquired by NARCL and try to raise their value for final resolution.
- Statement 3 is correct: Like any other asset reconstruction company, the NARCL will buy bad assets from banks. What sets it apart is that it has a provision of a government guarantee worth Rs 30,600 crore. If NARCL-IDRCL is unable to sell the stressed assets or has to sell it at a loss, then the government guarantee will be invoked. Under this, the difference between what the commercial bank was supposed to get and what they were able to raise will be paid from the Rs 30,600 crore that has been provided by the government.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements about the ‘National Asset Reconstru...
Overview:
The National Asset Reconstruction Company Limited (NARCL) is set to become India's first 'bad bank' aimed at managing the Non-Performing Assets (NPAs) of other banks. Let's analyze the given statements to determine their accuracy.
Statement Analysis:
Statement 1:
It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks.
- This statement is correct. NARCL is indeed the first 'bad bank' in India that will focus on resolving NPAs of various banks, thereby helping to clean up their balance sheets.
Statement 2:
The Reserve Bank of India will maintain 51% ownership in the NARCL, and the rest will be held by private lenders.
- This statement is incorrect. In reality, the NARCL will be a public-private partnership where the government will hold a 51% stake, and the remaining 49% will be held by private lenders.
Statement 3:
It has a provision of a government guarantee that sets it apart from any other asset reconstruction company.
- This statement is correct. NARCL will have a government guarantee, which distinguishes it from other asset reconstruction companies. This guarantee will help in attracting investors and providing confidence in dealing with distressed assets.
Conclusion:
Among the given statements, the correct ones are:
- Statement 1: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks.
- Statement 3: It has a provision of a government guarantee that sets it apart from any other asset reconstruction company.
The National Asset Reconstruction Company Limited (NARCL) is set to become India's first 'bad bank' aimed at managing the Non-Performing Assets (NPAs) of other banks. Let's analyze the given statements to determine their accuracy.
Statement Analysis:
Statement 1:
It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks.
- This statement is correct. NARCL is indeed the first 'bad bank' in India that will focus on resolving NPAs of various banks, thereby helping to clean up their balance sheets.
Statement 2:
The Reserve Bank of India will maintain 51% ownership in the NARCL, and the rest will be held by private lenders.
- This statement is incorrect. In reality, the NARCL will be a public-private partnership where the government will hold a 51% stake, and the remaining 49% will be held by private lenders.
Statement 3:
It has a provision of a government guarantee that sets it apart from any other asset reconstruction company.
- This statement is correct. NARCL will have a government guarantee, which distinguishes it from other asset reconstruction companies. This guarantee will help in attracting investors and providing confidence in dealing with distressed assets.
Conclusion:
Among the given statements, the correct ones are:
- Statement 1: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks.
- Statement 3: It has a provision of a government guarantee that sets it apart from any other asset reconstruction company.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer?.
Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements about the ‘National Asset Reconstruction Company Limited (NARCL)’: It will be the first ever 'bad bank' in India involved in the management of Non-Performing Assets of other banks. The Reserve Bank of India will maintain 51% ownership in the NARCL, and rest will be held by private lenders. It has a provision of a government guarantee that sets it apart from any other asset reconstruction company. Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1 and 3 onlyCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup