May 04, 2017

Cabinet clears ordinance to amend Banking Regulation Act, empowering RBI to effectively deal with NPAs


On May 3, the Union Cabinet approved the promulgation of an ordinance to amend the Banking Regulation Act to empower the Reserve Bank of India (RBI) to more effectively deal with the non-performing asset (NPA) crisis facing public-sector banks.

Reportedly, the ordinance will empower the RBI to issue direction to banks to effectively resolve bad loans. The amended law will also empower the RBI to set up oversight panels that will shield bankers from later action by probe agencies looking into loan recasts as a lot of discretion will be involved in the process.

The ordinance has been sent to the president for approval.

According to Finance Minister Arun Jaitley, the Cabinet has taken important decisions with regard to the banking sector. Jaitley said, "There is a convention that when some proposal is referred to the President, then details of it cannot be disclosed till it is approved. As soon as the approval comes, details will be shared."

Related Post

latest News

  • Protect Interests Of Indian Tobacco Farmers While Formulating GST Laws

    On March 20, the Federation of All India Farmer Associations (FAIFA - a non-profit federation whose mission is to support farmers in India and defend ...

    Read More
  • SBI to reduce minimum balance for savings account

    After receiving flak for charging a whopping Rs 1,771.67 crore as penalty from customers for non-maintenance of monthly average balance in savings acc...

    Read More
  • SC cautions HCs over filling up of vacancies

    Coming down heavily on the high courts in the country on the issue of vacancy of posts, on November 1, a Supreme Court Bench of Chief Justice Ranjan G...

    Read More