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GS Paper IUPSC Prelims 2019
Banking & Financial System
Question No. 159Interactive Test Mode
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Q159. What was the purpose of the Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

What was the purpose of the Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2019 • Indian Economy

Correct Answer: Option (D) — To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending

Concept & Option Breakdown

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The Inter-Creditor Agreement (ICA) was signed in 2018 under the framework of Project 'Sashakt' (recommended by the Sunil Mehta Committee). It aims at the speedy resolution of stressed assets and non-performing loans of ₹50 crore or more under consortium lending, where a resolution plan approved by lenders holding 66% of the aggregate debt is binding on all participating lenders.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2019 (Q159)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (D) — To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending

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Frequently Asked Questions — UPSC Prelims 2019 Q159

What is the official answer for UPSC Prelims 2019 GS Paper I Question 159 (Indian Economy)?

The official UPSC answer key for this 2019 Indian Economy (Banking & Financial System) question is Option (D): "To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2019 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

To solve Banking & Financial System questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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Previous QuestionConsider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data diktat, command the payment system providers that 1. they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India 2. they shall ensure that the systems are owned and operated by public sector enterprises 3. they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year Which of the statements given above is/are correct?
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