Cabinet clears ordinance to amend Banking Regulation Act to resolve NPA crisis

New Delhi: Union cabinet has cleared ordinance to amend Banking Regulation Act to resolve NPA crisis on Wednesday. As per sources, President's nod is likely soon.

SBs are saddled with non-performing assets or bad loans to the tune of a staggering Rs 6 lakh crore.

"It is an amendment in the Banking Regulation Act. Since Parliament is not in session, it will be issued as an ordinance which needs the President`s approval," official sources told IANS.

Finance Minister Arun Jaitley, while announcing the Cabinet decisions on Wednesday, hinted at the measure but gave no details citing protocol that it was not possible before the President gets the details for approval.

With Agency Inputs