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

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Q: 2 (IAS/2019)
What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,136,72,24,25,23,136

keywords: 

{'under consortium lending': [0, 0, 0, 1], 'indian banks': [0, 0, 1, 1], 'loans': [1, 1, 4, 14], 'financial institutions': [0, 0, 0, 2], 'infrastructure projects': [0, 0, 1, 2], 'independent regulator': [0, 0, 0, 1], 'fiscal deficit': [0, 2, 2, 4], 'crore': [0, 0, 1, 0], 'current account deficit': [0, 0, 0, 4], 'purpose': [1, 0, 7, 13], 'stressed assets': [0, 0, 0, 2], 'government': [5, 0, 0, 1]}

The purpose of the Inter-Creditor Agreement signed by Indian banks and financial institutions recently was to aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending. Under the agreement, the lead lender would be authorized to implement a resolution plan in 180 days, and all other lenders would be required to adhere to the plan. The agreement also aimed to promote greater efficiency in the resolution process and avoid cases being dragged for extended periods, leading to a buildup of bad loans.