Cabinet Clears Proposal For Government Guarantee Of Rs 30,600 Crore For Bad Bank

Union Cabinet has accredited proposal for establishing unhealthy financial institution

The Union Cabinet has accredited Central Government assure to the tune of as much as Rs 30,600 crores to again safety receipts to be issued by National Asset Reconstruction Company Limited (NARCL), Finance Minister Nirmala Sitharaman stated on Thursday.

The Cabinet clearance to the Central Government assure was given on Wednesday, she informed media individuals throughout a press convention.

The Finance Minister stated that in 2015, an asset high quality assessment of banks had been carried out, the place excessive incidence of non performing property (NPA) have been revealed.

She additional knowledgeable that within the final six years, the federal government's technique of 4 Rs, i.e. Recognition, Resolution, Recapitalisation and Reforms helped in recovering Rs 5,01,479 crores.

The NARCL will mixture NPAs in banks' stability sheets and handle in addition to dispose them of professionally, the finance minister stated.

The licence for NARCL is within the works, she added additional.