Banking Regulation Bill 2017 to replace NPA Ordinance 2017 passed
Q. Banking Regulation (Amendment) Bill 2017 will replace which bill/ordinance that came into effect earlier this year?- Published on 04 Aug 17a. Non Performing Assets Bill 2017
b. Non Performing Assets Ordinance 2017
c. Banking Regulation Act 1949
d. None of the above
ANSWER: Non Performing Assets Ordinance 2017
The Banking Regulation (Amendment) Bill 2017 was passed by the lower house of the parliament on Aug 3, 2016.
It will replace the Non-Performing Assets Ordinance, which came into effect earlier this year.
Finance Minister Arun Jaitley had introduced a bill in Lok Sabha to amend the Banking Regulation Act 1949.
The measure allows the RBI to initiate insolvency resolution process on specific stressed-assets.
The RBI would also be empowered to issue other directions for resolution, appoint or approve for appointment, authorities or committees to advise the banking companies for stressed-asset resolution.
The non-performing assets of banks have increased to more than INR 9 lakh crore and now RBI is empowered to refer the cases to Insolvency and Bankruptcy Board.
In June, RBI had identified 12 large loan defaulters who account for 25% of the total bad loans in the Indian banking system.
