What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions r

Question

What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

Accepted Answer

Project Sashakt was proposed by a panel led by PNB chairman Sunil Mehta. Bad loans of up to Rs. 50 crore will be managed at the bank level, with a deadline of 90 days. For bad loans of Rs. 50-500 crore, banks will enter an inter-creditor agreement, authorizing the lead bank to implement a resolution plan in 180 days, or refer the asset to NCLT.