2021 CSAT — Q43

Locate. This is a best-supported-inference question asking for the implied suggestion: find the line that states the gap the suggestion must fill. The passage credits the IBC and recapitalisation but insists they “are only a part of the solution,” and concludes: “Unless there are systemic reforms that address the problem of unsustainable lending, future credit cycles will continue to stress the banking system.”

Test (find the line, then match it). The implied suggestion is the missing piece the passage names: systemic/structural reforms targeting unsustainable lending. (d) “structural reforms as a long-term solution for bad loans” restates it directly.

Eliminate by anatomy. (a) is not in the passage — “the Central Government” closely regulating lending introduces an actor and mechanism the passage never mentions (and India’s bank lending is supervised by the RBI, not the central government). (b) reverses the passage’s relation — urging banks to “lend more” runs against the passage’s whole worry about reckless/unsustainable lending. (c) is not in the passage — “merger… alone” is a remedy the passage neither raises nor endorses. The transferable rule: the implied suggestion is the explicitly-named missing element (“systemic reforms”), not a plausible-sounding policy from outside the text. Key: (d).

“Bad debt resolution and recapitalisation are only a part of the solution… Unless there are systemic reforms that address the problem of unsustainable lending, future credit cycles will continue to stress the banking system.” — the passage’s own implied prescription is systemic/structural reform of lending → (d). (a) names “the Central Government” monitoring lending, an actor/mechanism the passage never invokes; (b) urges more lending, the opposite of reining in reckless lending; (c) offers “merger… alone,” a remedy absent from the passage.

The passage argues that the IBC and recapitalisation help but cannot fix reckless lending; only systemic reforms addressing unsustainable lending will stop future credit-cycle stress.

• (d) restates that implied prescription: structural reforms as the long-term fix for bad loans. Correct.
• (a) invents central-government monitoring, absent from the passage.
• (b) pushes more lending, opposite to the passage’s concern.
• (c) proposes bank mergers, never mentioned.

Answer: (d).

The passage hands you its own implied suggestion in its last sentence — “systemic reforms that address… unsustainable lending” — so the implied-suggestion answer is the one that restates that line, here (d). The distractors are all plausible banking-policy sentences (regulate, lower rates, merge) that a well-read aspirant might agree with in general, and that is the trap: an “implied suggestion” must be the passage’s own missing piece, not your preferred reform. (b) is especially instructive — it sounds pro-growth but contradicts the passage’s core complaint about reckless lending.