<h1>Government Approves Rs. 30,600 Crore Guarantee for NARCL to Boost Stressed Asset Resolution and Improve Bank Liquidity.</h1> The Union Cabinet approved a Rs. 30,600 crore government guarantee to support Security Receipts issued by the National Asset Reconstruction Company Limited (NARCL) for acquiring stressed loan assets. NARCL, established by banks, aims to consolidate and resolve stressed assets worth Rs. 2 lakh crore in phases, with 15% in cash and 85% in Security Receipts. The India Debt Resolution Company Ltd. (IDRCL) will manage these assets. The government guarantee, valid for five years, aims to enhance the liquidity of Security Receipts and incentivize quicker resolution, benefiting banks by improving asset recovery and freeing up resources for business growth.