The loan restructuring mechanism should be bolstered if the government were to get a firm grip on bad loans, said Minister of State for Finance Arjun Ram Meghwal.
“We need to strengthen the loan restructuring mechanism… It will, along with various other measures taken by both the government and the RBI, help in bringing NPA situation under control,” he told PTI.
Most recently, he said, the government brought in the ordinance giving wide-ranging legislative powers to the Reserve Bank on the non-performing asset (NPA) front.
The ordinance authorises the Reserve Bank to issue directions to any bank to initiate insolvency resolution process in the event of a default under the provisions …
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