Ordinance to tackle bad loans worth Rs 6 lakh crore cleared

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The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved a new framework for dealing with Rs 6 lakh crore worth of non-performing assets (NPAs) in the banking system. 

The framework includes the promulgation of an Ordinance to amend the Banking Regulation Act to give more teeth to the Reserve Bank of India (RBI) and its oversight committees to act on behalf of banks while deciding on NPAs. The proposals are now awaiting the President’s assent.

“We have taken some decisions regarding the banking sector. There are some modifications for which the President’s assent is required,” Finance Minister