Your question is L1 vs L2 Regularization. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
Explain the difference between L1 (Lasso) and L2 (Ridge) regularization and when you would use each for a credit risk model at HDFC Bank.