Arun Jaitley, Finance Minister of India introduced Banking Regulation (Amendment) Bill in Lok Sabha.This amendment bill empowers the Reserve Bank of India to resolve stressed assets clogging the banking system.
This bill will amendment The Banking Regulation Bill 1949 giving power to the Government to authorise the Reserve Bank of India to issue directions to the banks in order to initiate insolvency resolution in case of a default.These proceedings would be under the insolvency and bankruptcy code,2016.
Under the provisions of the Bill, the
government can also authorise the RBI to issue directions to banks with regard to resolution of stressed assets and allow it to name one or more committees to provide them with advice in order to do so.
government can also authorise the RBI to issue directions to banks with regard to resolution of stressed assets and allow it to name one or more committees to provide them with advice in order to do so.
Before the Bill was introduced in Parliament, the NPA ordinance amended The Banking Regulation Act 1949 in the same way.
The bill inserts a provisions to state that it will also be applicable to the State Bank of India ,its subsidiaries and regional rural banks.
The bill inserts a provisions to state that it will also be applicable to the State Bank of India ,its subsidiaries and regional rural banks.
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