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    Question

    Which of the following best describes the role of the

    National Asset Reconstruction Company Ltd (NARCL) in the Indian banking sector?
    A It primarily focuses on acquiring small NPAs from rural banks. Correct Answer Incorrect Answer
    B It handles the resolution of large stressed loan assets over ₹500 crore. Correct Answer Incorrect Answer
    C It is responsible for lending new loans to public sector banks. Correct Answer Incorrect Answer
    D It operates as a regulatory body for other ARCs. Correct Answer Incorrect Answer
    E It serves as a government entity for the securitization of public sector bank loans. Correct Answer Incorrect Answer

    Solution

    NARCL was established to address large NPAs in the banking sector, specifically focusing on assets worth ₹500 crore or more. It plays a pivotal role in resolving these large stressed loans, particularly in public sector banks.

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