In her Budget 2021-22 speech, Finance Minister Nirmala Sitharaman had announced that the government intends to set up a bad bank.
NARCL will try to identify and acquire assets on 15:85 cash and security receipts (SRs).
In September last year, the government had announced a guarantee worth Rs 30,600 crore to security receipts issued by NARCL. The guarantee is valid for five years.