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UPSC 2019: What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?
(a)To lessen the Government of India's perennial burden of fiscal deficit and current account deficit
(b)To support the infrastructure projects of Central and State Governments
(c)To act as independent regulator in case of applications for loans of Rs. 50 crore or more
(d)To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending
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Not attemptedCorrect Answer: (d) To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending
The Inter-Creditor Agreement signed in July 2018 under the ‘Sashakt’ plan obliges lenders in a consortium to adopt a common resolution plan for stressed assets of ₹50 crore or more, accelerating NPA resolution. It has nothing to do with fiscal deficits, infrastructure finance, or acting as an independent regulator. Thus option (d) is correct. ([vajiramandravi.com](https://vajiramandravi.com/upsc-exam/what-was-the-purpose-of-inter-creditor-agreement-signed-by-indian-banks-and-financial-institutions-recently/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2019 Indian Economy question?▼
The correct answer is option (d): To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2019, GS Paper 1, as Question 72. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 48 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.