{"id":90778,"date":"2025-06-01T10:36:29","date_gmt":"2025-06-01T10:36:29","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90778"},"modified":"2025-06-01T10:36:29","modified_gmt":"2025-06-01T10:36:29","slug":"with-reference-to-indian-economy-the-term-bad-bank-frequently-ment","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/","title":{"rendered":"With reference to Indian economy, the term ‘bad bank’, frequently ment"},"content":{"rendered":"

With reference to Indian economy, the term ‘bad bank’, frequently mentioned in news, refers to<\/p>\n

[amp_mcq option1=”an asset reconstruction company” option2=”an asset management company” option3=”a bank with huge ‘nonperforming assets'” option4=”a bank that has become insolvent” correct=”option1″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2022<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nIn the context of the Indian economy, the term ‘bad bank’ frequently mentioned in news refers to a proposed or established financial institution specifically designed to take over the bad loans (non-performing assets or NPAs) of other banks, especially public sector banks. This entity is essentially an Asset Reconstruction Company (ARC) that specializes in acquiring stressed assets from banks to resolve them.
\nOption A, “an asset reconstruction company,” correctly describes the nature of a ‘bad bank’.
\n<\/section>\n
\nThe primary function of a bad bank is to clean up the balance sheets of commercial banks by purchasing their NPAs, allowing the commercial banks to focus on normal banking activities like lending.
\n<\/section>\n
\nIn India, the National Asset Reconstruction Company Ltd (NARCL) has been set up as a form of ‘bad bank’ to take over large value stressed assets from commercial banks. An accompanying India Debt Resolution Company Ltd (IDRCL) is intended to manage and dispose of the acquired assets.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

With reference to Indian economy, the term ‘bad bank’, frequently mentioned in news, refers to [amp_mcq option1=”an asset reconstruction company” option2=”an asset management company” option3=”a bank with huge ‘nonperforming assets’” option4=”a bank that has become insolvent” correct=”option1″] This question was previously asked in UPSC CAPF – 2022 Download PDFAttempt Online In the context of the … <\/p>\n

Detailed SolutionWith reference to Indian economy, the term ‘bad bank’, frequently ment<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1108,1120,1190],"class_list":["post-90778","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1108","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nWith reference to Indian economy, the term 'bad bank', frequently ment<\/title>\n<meta name=\"description\" content=\"In the context of the Indian economy, the term 'bad bank' frequently mentioned in news refers to a proposed or established financial institution specifically designed to take over the bad loans (non-performing assets or NPAs) of other banks, especially public sector banks. This entity is essentially an Asset Reconstruction Company (ARC) that specializes in acquiring stressed assets from banks to resolve them. Option A, "an asset reconstruction company," correctly describes the nature of a 'bad bank'. The primary function of a bad bank is to clean up the balance sheets of commercial banks by purchasing their NPAs, allowing the commercial banks to focus on normal banking activities like lending.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to Indian economy, the term 'bad bank', frequently ment\" \/>\n<meta property=\"og:description\" content=\"In the context of the Indian economy, the term 'bad bank' frequently mentioned in news refers to a proposed or established financial institution specifically designed to take over the bad loans (non-performing assets or NPAs) of other banks, especially public sector banks. This entity is essentially an Asset Reconstruction Company (ARC) that specializes in acquiring stressed assets from banks to resolve them. Option A, "an asset reconstruction company," correctly describes the nature of a 'bad bank'. The primary function of a bad bank is to clean up the balance sheets of commercial banks by purchasing their NPAs, allowing the commercial banks to focus on normal banking activities like lending.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:36:29+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to Indian economy, the term 'bad bank', frequently ment","description":"In the context of the Indian economy, the term 'bad bank' frequently mentioned in news refers to a proposed or established financial institution specifically designed to take over the bad loans (non-performing assets or NPAs) of other banks, especially public sector banks. This entity is essentially an Asset Reconstruction Company (ARC) that specializes in acquiring stressed assets from banks to resolve them. Option A, \"an asset reconstruction company,\" correctly describes the nature of a 'bad bank'. The primary function of a bad bank is to clean up the balance sheets of commercial banks by purchasing their NPAs, allowing the commercial banks to focus on normal banking activities like lending.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/","og_locale":"en_US","og_type":"article","og_title":"With reference to Indian economy, the term 'bad bank', frequently ment","og_description":"In the context of the Indian economy, the term 'bad bank' frequently mentioned in news refers to a proposed or established financial institution specifically designed to take over the bad loans (non-performing assets or NPAs) of other banks, especially public sector banks. This entity is essentially an Asset Reconstruction Company (ARC) that specializes in acquiring stressed assets from banks to resolve them. Option A, \"an asset reconstruction company,\" correctly describes the nature of a 'bad bank'. The primary function of a bad bank is to clean up the balance sheets of commercial banks by purchasing their NPAs, allowing the commercial banks to focus on normal banking activities like lending.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:36:29+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/","name":"With reference to Indian economy, the term 'bad bank', frequently ment","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:36:29+00:00","dateModified":"2025-06-01T10:36:29+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"In the context of the Indian economy, the term 'bad bank' frequently mentioned in news refers to a proposed or established financial institution specifically designed to take over the bad loans (non-performing assets or NPAs) of other banks, especially public sector banks. This entity is essentially an Asset Reconstruction Company (ARC) that specializes in acquiring stressed assets from banks to resolve them. Option A, \"an asset reconstruction company,\" correctly describes the nature of a 'bad bank'. The primary function of a bad bank is to clean up the balance sheets of commercial banks by purchasing their NPAs, allowing the commercial banks to focus on normal banking activities like lending.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-the-term-bad-bank-frequently-ment\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"With reference to Indian economy, the term ‘bad bank’, frequently ment"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/90778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=90778"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/90778\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=90778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=90778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=90778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}