Banking Regulation Bill launched

The Finance Minister recently introduced a Bill of Banking Regulation empowering the RBI to resolve stressed assets clogging the banking system. It would help any bank to initiate insolvency proceedings and give directions for resolution of stressed assets.

“Stressed assets in the banking system have reached unacceptably high levels and hence, urgent measures are required for their speedy resolution…Therefore, it was considered necessary to make provisions in the Banking Regulation Act, 1949 for authorizing the Reserve Bank of India to issue directions to any banking company or banking companies to effectively use the provisions of the Insolvency and Bankruptcy Code, 2016 for timely resolution of stressed assets,” Jaitley said in a statement of intent, which is a part of the bill.