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Home› UPSC CSE› Prelims GS Paper I› 2019 questions› Question 37

UPSC CSE Prelims

Subject: Current Affairs Chapter: Economy

2019 PYQ

Question 37

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

Choose one answer ATo lessen the Government of India's perennial burden of fiscal deficit and current account deficit BTo support the infrastructure projects of Central and State Governments CTo act as independent regulator in case of applications for loans of ₹ 50 crore or more DTo aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending

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Correct answer: D

Correct Option: D Explanation: The 2018 inter-creditor agreement under the “Sashakt” framework aimed to coordinate creditor banks and accelerate resolution of consortium-lending stressed assets of ₹50 crore and above. Option-wise Analysis: A (Incorrect): It was not an agreement to finance fiscal or current-account deficits. B (Incorrect): Its main purpose was stressed-loan resolution, not government infrastructure development. C (Incorrect): It was a voluntary coordination mechanism, not a statutory independent loan regulator. D (Correct): Creditors agreed to common decision rules for faster resolution of large stressed assets.

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