economics medium MCQ

The '4R' strategy, articulated in the Economic Survey to address the Twin Balance Sheet problem in the Indian banking sector, stands for:

  1. Reduce, Restructure, Recapitalize, and Reform
  2. Recognize, Recapitalize, Resolve, and Reform
  3. Regulate, Restrict, Recover, and Reinvest
  4. Review, Revoke, Reissue, and Restructure

Answer: Recognize, Recapitalize, Resolve, and Reform

To cure the banking sector's NPA crisis, the government adopted the 4R strategy: *Recognize* the true extent of bad loans (via Asset Quality Reviews), *Recapitalize* the public sector banks to meet capital adequacy norms, *Resolve* the stressed assets through the Insolvency and Bankruptcy Code (IBC), and *Reform* the banking governance structure to prevent future reckless lending.

Topic Banking - NPA Resolution
Exam Relevance Banking, UPSC Prelims, SSC
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