As part of the Union Budget 2021, Finance Minister Nirmala Sitharaman announced the setting up of an entity that will help tide over the problem of bad assets by absorbing Non-Performing Assets (NPAs) of banks and improve credit flow in the economy. It is understood that this entity, popularly known as a ‘bad bank’ will be akin to an asset reconstruction company, which will purchase bad assets from banks at a discounted price.
Bad Banks – Union Budget 2021
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