Economy question from Sub Inspector exam, 2022 by JKSSB
In September 2021, the government has set up an asset management company that will work in tandem with the National Asset Reconstruction Company Ltd (NARCL) to clean up bad loans. Identify the name of this bank.
Last updated Jun 24, 2026
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.
