Q.3 The newly-created National Asset Reconstruction Company (NARCL) in the public sector offers hopes for the faster clean up of lenders’ balance sheets. In light of this, examine the scope of its success and challenges it may face in achieving its objectives. (10 Marks)

Mentor’s comment- https://indianexpress.com/article/opinion/columns/reserve-bank-bad-loans-india-national-asset-reconstruction-company-7634517/ In the intro mention the NPA percentage of the public sector banks in India. In the body, mention the functioning of NARCL which give it a distinct edge such as faster aggregation of distressed assets, its SR carrying sovereign assurance etc. Conclude by mentioning that the major challenges lies in execution.