An amendment to Section 35 of Banking Regulation Act will give RBI powers to directly intervene in bad loan cases, an ordinance towards which has been sent to the President for promulgation. Photo: Aniruddha Chowdhury/MintMumbai: The stressed loans resolution package being prepared by the government will empower the Reserve Bank of India (RBI) to directly intervene in settling bad loan cases, two people aware of the matter said. RBI will create a timeline of, say, 6-9 months for banks to deal with their big bad loan accounts. This person said RBI will also get some punitive powers to ensure that banks act quickly on these bad loans. In any case, such protection would mean amending the Prevention of Corruption Act and not the Banking Regulation Act.

Source: Mint May 04, 2017 06:12 UTC