Topic– Indian Economy – Issues
6) Discuss the features and advantages of Sashakt Scheme vis a vis Insolvency and Bankruptcy code?(250 words)
Why this question
NPA has been a huge challenge for banks and RBI has come up with several measures to deal with this challenge. IBC has been quite successful in handling cases of bad debts, thus, understanding why Sashakt scheme had been introduced and its comparison with IBC is important.
Key demand of the question
The question expects us to explain the features of Sashakt Scheme, explain why it has been introduced, its comparison with IBC, the comparative advantages offered, the shortcomings etc
Discuss – The overall explanation of the scheme, comparison, discussion about advantages and disadvantages of the scheme, way forward all has to form part of the discussion.
Structure of the answer
Introduction – Highlight the status quo of bad loans, and mention that RBI has been taking several measures in this regard such as IBC. Sashakt is in the same line of measures, but not by RBI.
- Explain Sashakt Scheme
- Compare and contrast it with IBC Scheme
- Explain why Sashakt when IBC is already there
- Discuss the advantages, disadvantages, challenges, way forward
Conclusion – Mention that the impact of the problem of NPA has started reflecting in our economy and manadates quick action and thus the need for multiple steps.