10 Questions
What is the primary objective of NARCL in resolving stressed loans?
To resolve stressed loans above ₹500Cr
What is the role of the Union Government in the Bad Bank framework?
To provide sovereign guarantee for Security Receipts
What is the primary benefit of the Bad Bank framework for individual banks?
Reduced losses due to NPA resolution
What is the purpose of the FIRST LOSS DEFAULT GUARANTEE (FLDG) norm introduced by RBI?
To require fintech companies to cover some losses of banker if borrower defaults
What is the role of a Self-Regulatory Organisation (SRO) in the fintech industry?
To promote transparency, fair competition, and ethical practices in the fintech industry
What is the benefit of the Bad Bank framework for the banking system as a whole?
Relief to banks and enabling them to focus on expansion and financial inclusion
What is the role of Security Receipts (SR) in the Bad Bank framework?
To partially pay the bid amount to Bad Bank
What is the consequence of Bad Bank dishonouring SR payment deadlines?
The Union Government provides a sovereign guarantee
What is the primary challenge of the Bad Bank framework?
Losses paid by owners of NARCL & IDRCL, and taxpayers' money used for the government's guarantee to Security receipts
What is the total amount of stressed loans stuck in the system, which the Bad Bank framework aims to resolve?
₹2L Cr
This quiz covers the concept of wilful defaulters in banking, including their capacity to repay but not repaying, and the consequences of being declared a wilful defaulter. It also touches on the role of RBI and IBC in dealing with such cases.
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