JKSSB Written 2022
Answer & Explanation
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Correct Answer:
Option C —
India Debt Resolution Company Limited
In the Indian government's "bad bank" framework announced in the 2021-22 Union Budget, two entities were established to address stressed/non-performing assets (bad loans):NARCL (National Asset Reconstruction Company Ltd.) acts as the Asset Reconstruction Company (ARC), acquiring and consolidating large stressed loans (typically over ₹500 crore) from banks.
IDRCL (India Debt Resolution Company Limited) serves as the Asset Management Company (AMC), working in tandem with NARCL to manage, resolve, and dispose of these acquired assets for value realization (e.g., through restructuring, sales to investors, or insolvency processes).
Multiple reliable sources confirm that IDRCL was incorporated on September 3, 2021, precisely matching the timing in the question as the entity set up to complement NARCL in cleaning up bad loans.
Options A, B, and D do not match this entity (e.g., India Infrastructure Finance Company Limited is unrelated, and the others are not the actual names used).
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.