Banking Regulation (Amendment) Bill, 2017


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

Rajya Sabha on 10 August 2017 passed the Banking Regulation (Amendment) Bill, 2017. The Lok Sabha has already passed the Bill for resolution of non-performing assets

The bill seeks to amend the Banking Regulation Act, 1949 to insert provisions for handling cases related to stressed assets of banks. Stressed assets are loans where the borrower has defaulted in repayment or where the loan has been restructured.

The bill will replace the Banking Regulation (Amendment) Ordinance, 2017 which was promulgated on 4 May 2017.

The legislation will also enable the Central government to authorize the Reserve Bank of India (RBI) to direct banking companies to resolve specific stressed assets by initiating insolvency resolution process.

The RBI has also been empowered to issue other directions for resolution, and appoint or approve appointment, authorities or committees to advise banking companies for resolution of stressed assets.


Wednesday, 30th Aug 2017, 03:51:17 AM

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