LS Clears Banking Regulation Bill, 2017
It’ll replace ordinance promulgated to empower RBI to deal with stressed assets
New Delhi: The Lok Sabha has passed the Banking Regulation (Amendment) Bill, 2017, introduced last month to replace the existing ordinance promulgated in May this year to empower the Reserve Bank of India to deal with stressed assets. Replying to a debate on the bill on Thursday, finance minister Arun Jaitley said the process of resolution of bad loans will start shortly.
The finance minister said the Reserve Bank of India had already identified top 12 loan defaulters and more cases will be ta- ken up for resolution. The ordinance had provided for more powers to the RBI to deal with stressed assets. “No one can claim the right of equality in not paying banks back. RBI has taken up some difficult cases... I am sure they will take up more,” he added.
After promulgation of Banking Regulation (Amendment) Ordinance, 2017, RBI identified 12 companies that account for 25 % of total NPAs of banks for immediate referral for resolution under the Bankruptcy Law. “We will shortly see the process of resolution coming. Any form of resolution is possible. We need to save the companies, the jobs and we need liquid companies to pay the banks,” said Jaitley. Bankruptcy proceedings have been initiated against companies such as Electrosteel Steel, Lanco Infratech, Alok Industries, Jyoti Structures Ltd, Essar Steel, Bhushan Steel and Bhushan Power & Steel.