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The Cabinet, on Thursday, gave approval to a new Bill for speedier and more effective way to recover debt.
"The new Bill proposes nine changes in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, and four changes in the Recovery of Debts due to Banks and Financial Institutions (RDBF) Act, 1993.
These changes will enable banks and financial institutions to get more time to reply to the aggrieved borrowers. These will also help the banks and the financial institutions not to be affected by the ex-parte hearings in the Debt Recovery Tribunal.
Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011, will be tabled in the forthcoming winter session of Parliament.
New policy for PSU asset buys
The Cabinet also approved the policy for acquisition of raw material assets abroad by central public sector enterprises (CPSEs). This will be applicable to CPSEs in agriculture, mining, manufacturing and electricity sectors having a three year record of making net profit.
It has also been decided to allow Navratna CPSEs to buy assets abroad up to Rs 3,000 crore without seeking Cabinet nod. Currently, the limit is Rs 1,000 crore. For Maharatna, the limit will be Rs 5,000 Crore.
The Information and Broadcasting Minister, Ms Amika Soni. announced, "The Government, in due course, will consider constituting a dedicated, Sovereign Wealth Fund."
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