Government notifies Banking Regulation
(Amendment) Act, 2017
The government has notified
the Banking Regulation (Amendment) Act under which it can authorise the RBI to
issue directions to banks to initiate insolvency resolution process to recover
bad loans.
The banking sector is saddled with non-performing assets (NPAs) of over Rs 8 lakh crore, of which Rs 6 lakh crore is with public sector banks (PSBs).
Earlier this month, Parliament had approved the Act, which replaced an ordinance in this regard.
The government in May had promulgated an ordinance authorising the Reserve Bank of India (RBI) to issue directions to banks to initiate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.
Following the ordinance, the RBI had identified 12 accounts each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks for immediate referral for resolution under the bankruptcy law.
The banking sector is saddled with non-performing assets (NPAs) of over Rs 8 lakh crore, of which Rs 6 lakh crore is with public sector banks (PSBs).
Earlier this month, Parliament had approved the Act, which replaced an ordinance in this regard.
The government in May had promulgated an ordinance authorising the Reserve Bank of India (RBI) to issue directions to banks to initiate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.
Following the ordinance, the RBI had identified 12 accounts each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks for immediate referral for resolution under the bankruptcy law.
ટિપ્પણીઓ નથી:
ટિપ્પણી પોસ્ટ કરો