अन्वेषण - What is BAD Bank or Asset Reconstruction Company? || ARC || AMC || NARCL

Discussion In This Video:-

a.) The bad bank is an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC) that takes over the bad loans of commercial banks, manages them, and finally recovers the money over a period of time.
b.) The bad bank is not involved in lending and taking deposits, but helps commercial banks clean up their balance sheets and resolve bad loans.
c.) The takeover of bad loans is normally below the book value of the loan and the bad bank tries to recover as much as possible subsequently.
d.) Recently, the Union Cabinet approved the Rs 30,600 crore guarantee to back Security Receipts issued by National Asset Reconstruction Company Limited (NARCL) for acquiring stressed loan assets.

 The NARCL is a part of a new Bad bank structure that was announced in the Budget 2021.

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