Module: General Practice
Q159: If the Committee decides that an MSME unit is unviable and recovery is the only option, which of the following is a valid "Exit Option"?
✅ Correct Answer: C
🎯 Quick Answer:
Sale to ARC or OTS.Options Analysis: A & B: These are growth strategies, not exit strategies for a failed unit.
D: Lending more money to an unviable unit is a bad credit decision.
C (Recovery): The bank cuts its losses.
It can either sell the bad loan to an ARC (transferring the risk) or agree to a One Time Settlement (OTS) where the borrower pays a negotiated lump sum to close the account.
Causal Reasoning: These mechanisms allow the bank to recycle its capital rather than keeping it locked in a dead asset.