What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

1. A

   To lessen the

   (a) To lessen the Government of India’s perennial oversight of loss-making banks. The Inter-Creditor Agreement was a lender-to-lender tool for stressed assets, not a cut in governmental bank oversight. Not the key.

2. B

   To support the infrastructure projects of Central and State Governments P a g e | 29

   (b) To support infrastructure projects of Central and State Governments. ICA was not an infrastructure-finance pact. Not the key.

3. C

   To act as an independent regulator in case of applications for loans of Rs. 50 crore or more

   (c) To act as an independent regulator for loans of Rs 50 crore or more. Banks cannot make themselves a regulator by signing an agreement. Not the key.

4. D

   To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

   (d) Faster resolution of stressed assets of Rs 50 crore or more under consortium lending. That is Project Sashakt’s Inter-Creditor Agreement: majority lenders bind the rest on a resolution plan. That is the official key.

Summary. Official key is (d). The 2018 Inter-Creditor Agreement under Project Sashakt aimed at quicker resolution of consortium NPAs of Rs 50 crore or more. It is not a regulator, not an infra fund, and not a cut in government oversight of banks. Honour (d).