Money & Banking

Bankruptcy Code will be discussed in this session of Parliament: Jaitley

KR Srivats New Delhi | Updated on January 20, 2018

Finance Minister Arun Jaitley said the Centre had taken several steps tocontain bad loans of banks.


Joint Parliamentary Committee has completed work on the Bill

Finance Minister Arun Jaitley on Wednesday said that the Joint Parliamentary Standing Committee looking into the Insolvency and Bankruptcy Code Bill has completed its work and adopted the report.

The Bill — after incorporating changes if any based on the Panel’s suggestions — will come up for discussion in the ongoing Parliament session, Jaitley said at the Second Meeting of the Consultative Committee attached to the Finance Ministry.

The theme of the meeting was “NPAs in Banking Sector”.

In his opening remarks, Jaitley said that the Centre had taken various measures to deal with the critical issue of non-performing assets (NPAs) in the banking sector, especially in the case of public sector banks

Jaitley said that there are two categories of defaulters: those who are unable to pay back due to the economic slowdown both in domestic and global markets as well as and other reasons beyond their control, and wilful defaulters, some of whom may have received loans without due diligence by the banks. The Finance Minister said that the Centre has taken various measures to deal with both these categories of defaulters.

The Centre has taken various measures to revive stressed sectors, which mainly include steel, textiles, power and roads, among others. He said that the Centre has also recapitalised banks by providing ₹25,000 crore in last year’s Budget as well as in this year’s Budget.

Transparency and professionalism have been brought into the appointment process for top management positions in public sector banks, including to the Chairman and Managing Director position, an official release quoted Jaitley as saying.

The Finance Minister also said that SARFAESI Act and DRT Act have been amended to make the recovery process more efficient and expedient.

Jaitley said the Centre has advised banks to take action against guarantors in the event of default by borrowers, under relevant sections of the SARFAESI Act, Indian Contract Act and RDDB & FI Act. A direction to this effect has been issued to the banks last month, he added.

Published on April 27, 2016

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