President gives nod to amendment in Banking Act to tackle bad loans

New Delhi: President Pranab Mukherjee has given his permission for the amendment in the banking act and the ordinance on Non-performing Assets (NPA) which provided powers to the Reserve bank of India to tackle mounting bad loans.

Though the ordinance has been signed by the President but the spokesperson of President has declined to give any confirmation regarding this. The government, however, is expected to shortly announce the details of the ordinance.

It may be mentioned that, on Thursday last, Finance Secretary Ashok Lavasa said, "It is not possible for me to put down a number on how the NPAs will go down, but certainly we feel that these changes will make the system more effective in resolving the bad loans."

ALSO READ: Shivpal Yadav announces Mulayam Singh as the President of his new party

The finance Minister Arun Jaitley, on Wednesday said, "The federal cabinet had taken some significant decisions related to the banking sector, without revealing details saying the decisions needed Presidential assent."

It may be recalled that the RBI had also relaxed rules for classifying bad loans (Non-Performing Assets) for small borrowers, earlier, in 2016.

ALSO READ: Nirbhaya case: Death or Life to the convicts? SC to pronounce its verdict today