Banking Sector Reforms and NPAs

Quick-reference summary — for full depth, see our detailed UPSC notes.

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📖 Quick summary

India nationalised banks in 1969 and 1980. A subsequent rise in Non-Performing Assets (NPAs) at public sector banks triggered reforms including the RBI's Asset Quality Review (2015), the Insolvency and Bankruptcy Code (2016), and PSU bank recapitalisation and mergers.

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💡 Key Facts

Bank nationalisation: 14 banks (1969) + 6 banks (1980).
NPA = loan overdue beyond 90 days.
IBC (2016) + recapitalisation + mergers = the policy response.

🔖 60-Second Revision

Nationalisation (1969, 1980) → NPA crisis (2010s) → IBC + recapitalisation + mergers.