NEW DELHI (Reuters) - India’s revamp of its banking regulations will make the mechanism to deal with bad loans more effective, Finance Secretary Ashok Lavasa said on Thursday, although he declined to share details of the amendments.
Finance Minister Arun Jaitley said late on Wednesday that the federal cabinet had taken some significant decisions related to the banking sector, without revealing details saying the decisions needed Presidential assent.
Separately, a senior government source said the Banking Regulation Act is being amended through an executive order or ordinance.
“The ordinance will enable banks and the RBI in the resolution of stressed asset cases,” Lavasa said, adding the government would share details after the ordinance was notified.
The government and the Reserve Bank of India (RBI) have previously said they were working on new ways to resolve bad loans at banks that hit a record $150 billion as of December.
Reporting by Rajesh Kumar Singh and Manoj Kumar; Writing by Devidutta Tripathy; Editing by Malini Menon