Prime News, National, Business, New Delhi, August 3:- The Banking Regulation (Amendment) Bill 2017, was passed in Lok Sabha on Thursday.
It was introduced in the Lok Sabha by Minister of Finance Arun Jaitley on July 24.
The Bill seeks to reform the Banking Regulation Act, 1949 to insert provisions for handling cases related to stressed assets. Stressed assets are the loans where a borrower has defaulted in repayment or where the loan has been restructured.
It was propagated in May this year and will replace the Banking Regulation (Amendment) Ordinance, 2017.
Under the Bill, the central government may authorise the Reserve Bank of India (RBI) to issue directions to banks for initiating proceedings in case of a default or failure to meet the legal obligations or conditions of a loan.
-(NGB, Inputs: Agencies)