Cabinet may take up NPA policy, new pension package this week

Framework on NPAs envisages changes to Prevention of Corruption Act and Banking Regulation Act

The Union Cabinet, later this week, could consider a new framework to deal with the Rs 6-lakh crore worth of toxic assets in the banking system. And, a Rs 5,000-crore pension plan for retired central government employees.

Sources say that the proposed framework on non-performing assets (NPAs) envisages amendments to the Prevention of Corruption Act and Banking Regulation Act. 

With the former, amendments will allow commercially viable decisions by banks which are not later scrutinised by probe agencies. With the latter, the Reserve Bank of India (RBI) could get an explicit mandate to intervene on behalf of state-owned banks while