'Indradhanush 2.0' is associated with:

Correct option is A

Correct Answer: A recapitalisation of public sector banks

Explanation:

• 'Indradhanush 2.0' is a scheme introduced by the Government of India to strengthen public sector banks through recapitalization.
• The program was initiated to address the capital adequacy of these banks, ensuring they meet regulatory norms and support economic growth.
• It followed the earlier 'Indradhanush' scheme of 2015, which was aimed at revamping public sector banks with a focus on accountability, governance reforms, and infusion of capital.
• Under 'Indradhanush 2.0,' additional capital was infused into banks to help them tackle non-performing assets (NPAs), meet Basel III norms, and boost lending capacity.
• This scheme was a vital step towards enhancing financial stability in India's banking sector.

Information Booster:

•  'Indradhanush 2.0' was introduced in 2019.
•  It focused on maintaining the financial health of public sector banks.
• The scheme emphasized meeting Basel III compliance requirements.
•  It targeted improving risk management and governance.
•  The initiative played a role in improving credit flow in the economy.