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Banking Regulation Act authorises RBI to issue directions in respect of insolvency resolution process

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 25th August, 2017/Bhadra 3, 1939 (Saka)

The following Act of  Parliament received the assent of the President on the 25th August, 2017, and is hereby published for general information:—

THE BANKING REGULATION (AMENDMENT) ACT, 2017 NO. 30 OF 2017 [25th August, 2017.]

An Act further to amend the Banking Regulation Act, 1949. BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:—

1. (1) This Act may be called the Banking Regulation (Amendment) Act, 2017. (2) It shall be deemed to have come into force on the 4th day of May, 2017.

2. In the Banking Regulation Act, 1949 (hereinafter referred to as the principal Act), after section 35A, the following sections shall be inserted, namely:—

‘35AA. The Central Government may, by order, authorise the Reserve Bank to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect

Explanation.—For the purposes of this section, “default” has the same meaning assigned to it in clause (12) of section 3 of the Insolvency and Bankruptcy Code, 2016. 35AB.

(1) Without prejudice to the provisions of section 35A, the Reserve Bank may, from time to time, issue directions to any banking company or banking companies for resolution of stressed assets.

(2) The Reserve Bank may specify one or more authorities or committees with such members as the Reserve Bank may appoint or approve for appointment to advise any banking company or banking companies on resolution of stressed assets.’.

3. In section 51 of the principal Act, in sub-section (1), after the figures and letter “35A,”, the figures and letters “35AA, 35AB,” shall be inserted. 4.

(1) The Banking Regulation (Amendment) Ordinance, 2017 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the Banking Regulation Act, 1949 as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the said Act, as amended by this Act.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

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