SME Times is powered by   
Search News
Just in:   • Sensex sheds 382 point over profit booking, crude oil prices  • Weak rupee benefited Infosys in Q2: CFO  • JSW Energy's Himachal hydro plants unaffected by recent heavy rains  • Investment cycle rising since 2016, to last till 2022: RBI  • Centre working to achieve zero hunger by 2030: Minister 
Last updated: 04 May, 2017  

Parliament.9.Thmb.jpg Cabinet approves Banking Regulation amendment to fight NPAs

NPA.9.jpg
   Top Stories
» Investment cycle rising since 2016, to last till 2022: RBI
» Workshop on health of GeM organized
» Rupee slide not helping exports sector: Drip Capital CEO
» Naidu leaves for Belgium to attend 51-nation ASEM summit
» 45 Indian cos taking part in Expo Cihac in Mexico
SME Times News Bureau | 04 May, 2017
In a major decision aimed at tackling the mounting non-performing assets (NPAs) of public sector banks, the Union Cabinet on Wednesday night issued an ordinance to amend the Banking Regulation Act that will empower the RBI to go after defaulters.

The Cabinet is believed to have approved a policy on bad debts (NPAs), which is being forwarded to President Pranab Mukherjee for approval. The President is likely to clear the ordinance on Wednesday night itself.

"It is an amendment in the Banking Regulation Act. Since Parliament is not in session, it will be issued as an ordinance, which needs President's approval," official sources told IANS.

Finance Minister Arun Jaitley gave hints on the decision, but declined to go into the details citing protocol constraints about disclosing something even before the President gets it.

Jaitley merely said the Cabinet has taken an "important decision" relating to the banking sector. Media attempts to elicit details from him failed.

It is believed that the ordinance would give powers to the Reserve Bank of India (RBI) to take strict action against defaulters while being lenient in cases of genuine business failures.

The policy is also likely to contain guidelines regarding public auction of assets of the defaulting companies or individuals.

The ordinance assumes significance in the context of the government's attempts to get Vijay Mallya extradited to India. His Kingfisher Airlines had defaulted to the tune of about Rs. 9,000 crore in loans to public sector banks. As banks started hounding him for recovery of their loans, Mallya fled to London last year.

Informed sources said the details of the amendments may be disclosed once the President gives his approval.

According to a study, the current financial stress in the Indian banking system is estimated at Rs 11.80 lakh crore, of which gross NPAs of Rs 2.44 lakh crore have been sold to Asset Reconstruction Companies (ARCs).

The study was jointly carried out by industry body Associated Chambers of Commerce and Industry of India, Society of Insolvency Practitioners of India and Edelweiss.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 17 Oct, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(8)
» Letter of Credit - a safe and secure payment mode?(1)
» Punjab to give unique number to plots of land to prevent frauds(1)
» Ashok Leyland to launch 13-seater passenger vehicle, LCV(1)
» Nearly 80 pc of Indian startups are unsuccessful: Survey(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter