The cabinet on Wednesday approved promulgation of an ordinance to amend the Banking Regulation Act to speed up recovery of bad loans. Here are five ways the government and Reserve Bank of India can speed up recovery of non-performing assets (NPAs). Amendment in banking law to give RBI more powersThe Banking Regulation Act may be amended to give RBI more powers to monitor bank accounts of big defaulters. Stringent NPA recovery rulesThe government has over the years enacted and tweaked stringent rules to recover assets of defaulters. The amount of stressed loans was up at 12.3% of total loan given out by banks by September, up from 11.5% in March 2016.

Source: Hindustan Times May 04, 2017 11:37 UTC