What was the purpose of the intercreditor agreement?

The agreement for resolution of loan accounts which are under the control of a group of lenders, and the size of those accounts are Rs 50 crores or above is known as intercreditor agreement. The Sunil Mehta committee recommended the Intercreditor Agreement to solve the problem of stressed assets and deal with bad loans. You can read about The Reserve Bank of India: Functions and Composition in the given link.

Further readings:

1. Non Performing Assets (NPA) – Facts for UPSC GS-III
2. Topic-Wise GS 3 Questions for UPSC Mains