Nirmala Sitharaman lays out ‘bad bank’ blueprint with govt guarantee worth Rs 30,600 crore

Finance Minister Nirmala Sitharaman said the Union Cabinet has approved a crucial plan aimed at reducing non-performing assets of public sector plans. Here is all you need to know.

The Union Cabinet has approved a crucial plan for setting up the National Asset Reconstruction Company Limited (NARCL) — also known as the ‘bad bank’. It is aimed at reducing non-performing assets (NPA) of public sector banks.

Finance Minister Nirmala Sitharaman addressed a press conference on Thursday where she said the cabinet has approved a central government guarantee of up to Rs 30,600 crore for Security Receipts that will be issued by the NARCL to public sector banks with NPAs.