Q. With regard to Project Sashakt, sometimes seen in news, Consider the following statements: 1. It is based on recommendations of Sunil Mehta Committee. 2. It aims to strengthen the credit discipline of public sector banks. Which of the statements given above is/are correct?
Answer: 1 and 2 only
Notes: Statement 1 and 2 are correct. Project Sashakt is a five-pronged strategy to resolve bad loans and bring credit discipline in banking sector. It is based on recommendation of a committee led by PNB chairman Sunil Mehta. It aims to ensure the operational turnaround of the banks and stressed companies so that the asset value is retained. Key features: ● Bad loans of up to 50 crores will be managed at the bank level, with a deadline of 90 days. ● Bad loans of 50-500 crore, banks will enter an inter-creditor agreement, authorizing the lead bank to implement a resolution plan in 180 days, or refer the asset to NCLT. ● Resolution by independent AMC, supported by institutional funding through the AIF for loans above 500 crore.