TNPSC Current Affairs 2017 February 12

 Union Government to come out with 2nd PSB recapitalization plan Indradhanush 2.0

The Union Government is planning to come out with ‘Indradhanush 2.0’ a comprehensive plan for recapitalization of Public Sector Lenders. The aim of plan to make sure they remain solvent and fully comply with global capital adequacy norms, Basel-III.

IndraDhanush 2.0 will be finalized by RBI (Reserve Bank of India) after completion of Asset Quality Review (AQR). Asset Quality Review is likely to be completed by end of March 2017.

About Asset Quality Review:

Asset Quality Review exercise was set out by RBI in December 2015 and asked banks to recognize some top defaulting accounts as non-performing Assets and make necessary provisions for them. RBI has set a deadline of March 2017 to complete this exercise.

In Short , it aims to clean up the balance sheet of Public service banks . The number will be re-looked and a revised programme of capitalization will be issued as part of Indradhanush 2.0.