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What was the purpose of Inter – Creditor Agreement signed by Indian banks and Indian Financial Institutions recently?

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na.    nTo lessen the GoI burden of Fiscal Deficit andnCurrent Account Deficit

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nb.   nTo Support the Infrastructure projects ofnCentral and State Govt.

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nc.    nTo act as independent regulator in case ofnapplications for loans of 50 Crores or more

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nd.    nTo aim as faster resolution of stressed assetsnof Rs. 50 Crores or more which are under consortium lending

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nAns: D. Faster Resolution of Stressed Asset

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nThis agreement was signed on the recommendation of SunilnMehta Committee. The Committee was entrusted to look into ways to handlenstresses asset. It was asked to give recommendation about dealing with badnloans that banks must resolve before a certain deadline.

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