Parliament passes Banking Regulation
(Amendment) Bill, 2017
11 Aug, 2017
has passed the Banking Regulation (Amendment) Bill, 2017 with the Rajya
Sabha approving it today. The Lok Sabha has already passed it. Replying to
a debate on the Bill, Finance Minister Arun Jaitley said, the wilful
defaulters will not be spared and prosecution s are being launched against
them. He said, the governmentís decision has shaken the defaulters and
they have started rushing to banks to resolve the issue.
He said, the Non-Performing Assets, NPAs in the banks stand at 6.41 lakh
crore in the public sector banks while total stressed assets are at 8.02
lakh crore. He said, every account figuring in HSBC, Liechtenstein and
Panama is being investigated and the Government in touch with concerned
countries in this regard. The Minister also said that infrastructures in
Debt Recovery Tribunal, National Company Law Tribunal is being expanded to
deal with stressed assets.
Participating in the debate, Jairam Ramesh of Congress demanded that NPA
defaulters should be punished. He charged the Government with shying away
from responsibility. Sukhendu Sekhar Roy of Trinamool Congress alleged
that the bill would not serve itís intended purpose.
AIR Correspondent reports, 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 4th of May this year. The legislation will 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.