Paper I · 6 Indian Economy & Planning · 6.2.2 Banking and financial inclusion

6.2.2.4 Non-performing assets: classification, twin balance sheet problem and resolution (ARCs, NARCL)

A loan unpaid for more than 90 days is an NPA; India's bad-loan crisis peaked around 2018 and was cleaned up through recognition, recapitalisation, the IBC and recovery laws.

  • APPSC Paper I · Paper I
  • Advanced level
  • 6 min read
  • Full course

Key terms

  • NPA
  • SMA
  • substandard
  • doubtful
  • loss asset
  • twin balance sheet
  • SARFAESI
  • DRT
  • ARC
  • NARCL
  • PARA
  • bad bank

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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