Which Committee has set up to look into the faster resolution of stressed assets, recommended the creation of an asset management company for the resolution of stressed loans worth more than Rs. 500 crores?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Kirit Somaiya Committee
B	Sunil Mehta Committee
C	Ajay Mathur Committee
D	SS Mundra Committee

Explanation:

Detailed explanation-1: -It has recommended the creation of an asset management company for the resolution of stressed loans worth more than Rs. 500 crore. The committee had also laid out a plan to resolve SME loans within 90 days.

Detailed explanation-2: -As mentioned earlier, timely resolution of stressed assets, especially by deposit taking institutions is of key interest to the RBI. In the absence of a comprehensive insolvency law in place, RBI had to put in place a series of schemes that emulated desirable features of an insolvency legislation.

Detailed explanation-3: -Banking Committees and Recommendations Question 7 Detailed Solution. The correct answer is Nariman Committee.

Detailed explanation-4: -Sunil Mehta, a non-executive chairman of Punjab National Bank, was the head of Sashakt Committee. The government had constituted a committee led by Sunil Mehta to resolve the issue of NPAs.

Detailed explanation-5: -Stressed assets are a sum of Non-performing assets, restructured loans, and written-off assets. During the period of 90 days before becoming non-performing assets, these are called ‘stressed assets.

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