Money & Banking

Jaitley introduces Bill to replace NPA ordinance in Lok Sabha

Our Bureau New Delhi | Updated on January 11, 2018 Published on July 24, 2017

BL25_04_JAITLEY

Bill to levy cess on diesel, petrol for development of waterways

Finance Minister Arun Jaitley on Monday introduced a Bill in the Lok Sabha to replace the NPA ordinance promulgated on May 7 this year.

The Banking Regulation (Amendment) Bill 2017 will amend the Banking Regulation Act 1949 for this purpose.

The NPA ordinance, which had amended the Banking Regulation Act, was promulgated as Parliament was not in session and immediate action was required to address the unacceptably high levels of stressed assets in the banking system.

The Constitution requires ordinances to be approved by Parliament within six weeks of the next session. The Monsoon session of Parliament commenced on July 17.

It may be recalled that the NPA ordinance had conferred powers on the Centre for authorising the Reserve Bank of India to issue directions to banks to initiate insolvency resolution process in respect of a default, under the Insolvency and Bankruptcy Code 2016.

It had also conferred power upon the RBI to issue directions to banking companies for resolution of stressed assets and allow it to specify one or more committees to advise banking companies on resolution of stressed assets.

Waterways

Meanwhile, P Radhakrishnan, Minister of State for Road Transport and Highways, on Monday introduced a Bill in the Lok Sabha for the development and maintenance of national waterways.

The Central Road Fund (amendment) Bill 2017 seeks to levy a cess of 2.5 per cent on high-speed diesel and petrol.

This would accelerate the development of national waterways by utilising the fund generated by way of cess, according to the State of Objects and Reasons.

The Bill also seeks to offer incentives and certainty for the private sector to invest in inland waterways transport sector.



srivats.kr@thehindu.co.in

Published on July 24, 2017
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