Non-performing assets (NPA) is now approved by President Pranab Mukherjee, to amend the Banking Regulation Act. Today, he has signed the ordinance.
The amendment will empower the Reserve Bank of India (RBI) to effectively resolve bad loans by setting up oversight committees and insulating banks from Central Bureau of Investigation/ Central Vigilance Commission (CBI/ CVC) investigation.
As per Finance Secretary Ashok Lavasa said, "The amendments to the Act will help in effectively resolving the bad loans issue"
"It is not possible for me to put down a number on how this (NPAs) will go down, but certainly we feel that these changes will make the system more effective in handling the bad loans," he added.