Multiple choice

Public Sector Banks were able to recover Non Performing Assets of Rs 20,000 crores. Which of the following has been the major contributor in this recovery?

  1. Compromise Schemes

  2. Lok Adalats

  3. Debt Recovery Tribunals

  4. Asset Reconstruction Companies

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Asset Reconstruction Companies (ARCs) were created under the SARFAESI Act to purchase bad loans (NPAs) from banks and manage their recovery. During the period mentioned, ARCs like ARCIL were instrumental in recovering large sums for the public sector banking system.