Finance Minister Nirmala Sitharaman addressed a press conference on Thursday and announced that the Union Cabinet has approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by National Asset Reconstruction Company Ltd (NARCL) or the bad bank.

In her presser, Sitharaman said that NARCL will issue security receipts to banks. 

"NARCL will pay up to 15 per cent of the agreed value for the loans in cash and the remaining 85 per cent would be government-guaranteed security receipts," Nirmala Sitharaman said,