Answer: Non-performing Assets
Notes: The Asset Reconstruction Company of India (ARCIL) was established in 2002 to address the issue of non-performing assets (NPAs) in the Indian banking sector. NPAs are loans or advances that are in default or in arrears. ARCIL's primary function is to acquire these distressed assets from banks and financial institutions, thereby helping to clean up their balance sheets and improve financial stability. This initiative is crucial for enhancing the overall health of the banking system and facilitating credit flow in the economy.
