May 5, 2017 / 11:36 AM / 3 months ago

Change in law aimed at speeding up bank bad loan resolution: Arun Jaitley

Defence Minister Arun Jaitley attends the annual Moscow Conference on International Security (MCIS) in Moscow, Russia, April 26, 2017.Maxim Shemetov/Files

NEW DELHI (Reuters) - Indian government's decision for change in the country's banking laws is aimed at speeding up resolution of bad loans and providing comfort to bankers in taking decisions, Finance Minister Arun Jaitley said on Friday.

The government earlier on Friday notified tweaks in the Banking Regulation Act through an executive order, further empowering the central bank to identify and enforce resolution on specific soured loans.

"The object of this act is that the present status quo can't continue and the present status quo is that not much was moving," Jaitley told a news conference.

The government will increase capital injection in state-run banks if needed and that would be based on strict performance parameters, Anjuly Chib Duggal, secretary, financial services, told reporters later at the same conference.

Reporting by Rajesh Kumar Singh and Manoj Kumar; Writing by Devidutta Tripathy; Editing by Swati Bhat

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