The Reserve Bank of India (RBI) now has the powers to direct banks to initiate bankruptcy proceedings against defaulting companies, and to take decisions on behalf of lenders while dealing with stressed assets, after the President gave his assent to an Ordinance to amend the Banking Regulation Act.The Ordinance is the focal point of a new framework which the government hopes will help it hasten the processes to deal with nearly Rs 7 lakh crore worth of non-performing assets (NPAs) in the Indian banking system. The government on Friday notified the Banking Regulation (Amendment) Ordinance 2017. 

The Reserve Bank of India (RBI) now has the powers to direct banks to initiate bankruptcy proceedings against defaulting companies, and to take decisions on behalf of lenders while dealing with stressed assets, after the President gave his assent to an Ordinance to amend the Banking Regulation Act.The Ordinance is the focal point of a new framework which the government hopes will help it hasten the processes to deal with nearly Rs 7 lakh crore worth of non-performing assets (NPAs) in the Indian banking system. The government on Friday notified the Banking Regulation (Amendment) Ordinance 2017.