The Lok Sabha on Thursday gave its nod for a Bill to replace the NPA Ordinance promulgated on May 7 this year.
The Bill – The Banking Regulation (Amendment) Bill 2017 – sought to amend the Banking Regulation Act, 1949, for this purpose.
“In all the 12 cases, the insolvency process has been initiated. Shortly, we expect to see the process of resolution in these 12 cases,” Jaitley said.
He also indicated that the RBI is expected to refer more cases to the banks, for them to be taken up for the insolvency process.
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 the insolvency resolution process in respect of a default, under the Insolvency and Bankruptcy Code 2016.
It had also conferred powers 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.
Chit funds Meanwhile, responding to a separate query on chit funds, Jaitley noted that the enactments of the States covered only chit funds operating within their respective regions.
“They don’t cover chit funds having operations in multiple States and we are now thinking of bringing a central law in this regard before Parliament,” he said.