National Asset reconstruction Company Limited (NARCL)
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Union Government has approved the decks for National Asset reconstruction Company Limited (NARCL) on September 16, 2021.
The government of India has set up two new entities to acquire stressed assets from banks and then sell them in the market. NPA refers to a classification for loans or advances that are in default or in arrears.
1-NARCL:
NARCL has been incorporated under the Companies Act and has applied to the Reserve Bank of India for a license as an Asset Reconstruction Company (ARC).
NARCL will acquire stressed assets worth about Rs 2 lakh crore from various commercial banks in different phases.
Public Sector Banks (PSBs) will maintain 51% ownership in NARCL.
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