The Cabinet had yesterday approved government guarantee of up to Rs 30600 crore to back security receipts to be issued by National Asset Reconstruction Company (NARCL), Finance Minister Nirmala Sitharaman stated today. NARCL proposes to acquire stressed assets of about Rs. 2 Lakh crore in phases within extant regulations of RBI. It intends to acquire these through 15% Cash and 85% in Security Receipts (SRs). The following Frequently asked questions explain various aspects regarding Central Government guarantee to back Security Receipts issued by National Asset Reconstruction Company Limited for acquiring of stressed loan assets.
