Highlights: Govt Announces Setting Up Of National Asset Reconstruction Company

Important announcements from the press conference:

1.?Finance Minister Nirmala Sitharaman: Union Cabinet yesterday approved Central Government guarantee up to Rs 30,600 Crore to back Security Receipts to be issued by National Asset Reconstruction Company Limited (NARCL)

2.?Finance Minister Nirmala Sitharaman: NARCL is already been incorporated, license in process, cabinet approval has come

3. Finance Minister Nirmala Sitharaman:? Along with NARCL, we are also setting up an India Debt Resolution Company Limited. PSBs will have 51% ownership in NARCL, while PSBs and public financial institutions will have a maximum of 49% stake

4.?Financial Services Secretary: Debt Resolution Company Limited has also been incorporated, company is in place now like NARCL

5.?Finance Minister Nirmala Sitharaman: 15% cash payment to be made to banks for NPAs based on some valuation, 85% to be given as Security Receipts For Security Receipts to have their value in tact

6.? Finance Minister Nirmala Sitharaman:?Many ARCs are there in the private sector but they hesitate to take big-ticket asset resolutions that is why government-backed security receipts are required

7. Finance Minister Nirmala Sitharaman: PSBs are not only making profits, now but also raising money from markets. A total of Rs 58,697 crore has been raised by them so far; both in debt and equity