Which of the following statements are correct regarding Non Performing assets NPA 1 In the year 1991...........

Economic Affairs Types of Banks and Banking

Which of the following statements are correct regarding Non Performing assets(NPA)?

1. In the year 1991 Narsimham committee was formed to recommended reforms to tackle NPAs.

2. Mission Indradhanush is also step towards tackling NPAs.

Code:

1 only

2 only

Both 1 and 2

none of the above

Any asset which stops giving returns to its investors for a specified period of time is known as Non-Performing Asset (NPA).

NPAs story is not new in India and there have been several steps taken by the GOI on legal, financial, policy level reforms. In the year 1991, Narsimham committee recommended many reforms to tackle NPAs. Some of them were implemented like The Debt Recovery Tribunals (DRTs) – 1993, Credit Information Bureau – 2000, SARFAESI Act – 2002 and Mission Indradhanush – 2015.

Mission Indradhanush – 2015

The Indradhanush framework for transforming the PSBs represents the most comprehensive reform effort undertaken since banking nationalization in the year 1970 to revamp the Public Sector Banks (PSBs) and improve their overall performance by ABCDEFG.

Hence both statements are correct.