Project Sashakt often seen in the news is related to ........

Indian Economic System(RAS) Money and banking

Download Solution PDF

Project Sashakt, often seen in the news, is related to:

A strategy to resolve bad loans in banks

Skill development of Railway employees

It is a review or assessment of the credit risk associated with an asset

A strategy to resolve the problems of ‘Twin balance sheet syndrome’

छोटे Courses बड़े Results

Master Money and banking

Prepare through Micro-courses

Try Now

Explanation:

Project Sashakt:

It is a five-pronged strategy to resolve bad loans, suggested by PNB chairman Sunil Mehta and accepted by the government. The five-pronged resolution route is

1) outlining an SME resolution approach,

2) bank-led resolution approach,

3) AMC/AIF led resolution approach,

4) NCLT/IBC approach, and

5) asset-trading platform It proposes:

• Bad loans of up to Rs. 50 crores will be managed at the bank level, with a deadline of 90 days.

• For bad loans of Rs 50-500 crore, banks will enter an inter-creditor agreement, authorizing the lead bank to implement a resolution plan in 180 days, or refer the asset to NCLT.

• For loans above Rs 500 crore, the panel recom-mended an independent AMC (asset management company), supported by institutional funding through the AIF.