President Pranab Mukherjee today approved an ordinance on Non-performing Assets (NPA) which will provide greater powers to Reserve Bank of India to tackle mounting bad loans.
Earlier, the Cabinet had approved promulgation of the ordinance to amend the Banking Regulation Act for resolution of the non-performing asset (NPA) crisis.
The cabinet had also approved a new policy to boost consumption of locally produced steel and modifications to recommendations of the Seventh Central Pay Commission with respect to pensioners.
In order to empower RBI to give directions to banks to effectively resolve NPAs, changes are being made to Section 35A of the Banking Regulation Act as also certain provisions of the Bankruptcy Code.
Read the full text of the Ordinance below.
