July 24th, 2017
Union Finance Minister Arun Jaitley introduced the Banking Regulation (Amendment) Bill, 2017 in Lok Sabha. The Banking Regulation (Amendment) Bill, 2017 seeks to amend the Banking Regulation Act, 1949 and replace the Banking Regulation (Amendment) Ordinance 2017, which was promulgated in May 2017.
Provisions of the Bill:
- It authorises the RBI to direct the banking companies to resolve the problem of stressed assets.
- It also allows the RBI to initiate insolvency resolution process on specific stressed assets.
- It empowers RBI to issue other directions for resolution, appoint or approve authorities or committees to advise the banking companies for stressed asset resolution.
- The recovery proceedings will be carried out under the Insolvency and Bankruptcy Code, 2016 that provides for a time-bound process to resolve defaults.