New Delhi: The Lok Sabha today gave its nod to The Banking Regulation (Amendment) Bill, 2017 with Finance Minister Arun Jaitley asserting that there will be improvement in recovery and also resolution to various wranglings related to the Non-Performing Assets vis-a-vis the banking system. The Bill has been necessitated as the government had promulgated an Ordinance in May this year. The Bill amends the Banking Regulation Act, 1949 and seeks to insert provisions for recovery of outstanding loans. Under these provisions, the central government is empowered to authorise the Reserve Bank of India to direct banks to initiate recovery proceedings against loan defaulters. The Bill was passed after statutory resolution moved by Congress member Adhir Ranjan Chowdhury objecting to the promulgation of the Ordinance was rejected by voice vote. Mr Chowdhury, however, said he was not convinced by Finance Minister Jaitley’s reply as it did not explain the urgency on why the Ordinance was brought. “It was a case of under cutting the parliamentary authority,” he alleged. In his reply, Mr Jaitley narrated in details on what led to the precarious problem on NPAs in the country but exuded confidence that very soon “resolution” would come. “In the months to come, you will see the process of resolution coming,” the Finance Minister said and in this context maintained that The Insolvency and Bankruptcy Code, 2015 enacted by the NDA regime has proved much fruitful. He also thanked the Opposition members of both Houses of Parliament for passing The Insolvency and Bankruptcy Code, 2015 law within a period of five months. FM Jaitley also advised the members to have faith in the Reserve Bank of India in carrying out its role in settling various issues concerning NPAs. (UNI)
