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9th August 2016 Current Affairs Questions and Answers

9th August 2016 Current Affairs MCQs, Quiz, Questions : Current Affairs for August 2016 ,  Daily Multiple Choice Questions (MCQs) for In...

Banking Regulation (Amendment) Bill, 2017

Banking Regulation (Amendment) Bill, 2017:

  • Rajya Sabha on 10th August has passed the Banking Regulation (Amendment) Bill, 2017 with the Rajya Sabha approving it. The Lok Sabha has already passed it. 
  • The bill will replace the Banking Regulation (Amendment) Ordinance, 2017 promulgated by President in May 2017.
  • Bill basically empowers the Reserve Bank of India (RBI) to give directions to banks to act against loan defaulters. 
  • The Bill seeks to amend the Banking Regulation Act, 1949 by inserting provisions for handling cases related to stressed assets. Stressed assets are loans on which the borrower has defaulted or it has been restructured. 
  • RBI had, in June, identified 12 'defaulters' who account for around 25% of India's non-performing assets (NPA) and informed banks to take up insolvency proceedings against them.
  • The Central Government can authorise the RBI to issue directions to banks for initiating proceedings in case of a default in loan repayment. These proceedings would be under the Insolvency and Bankruptcy Code, 2016.
  • RBI may also form committees to advise banks on the resolution of stressed assets. The members will be appointed or approved by the RBI.
  • Public sector banks were hit the most as big industrial and infrastructure programmes were supported by them in the hope that there would be further expansion.

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