Facing criticism on slow progress in acting against those who figure in the non-performing assets of banks list, the union cabinet today cleared an ordinance empowering the Reserve Bank of India (RBI) to act against wilful defaulters. The ordinance has been sent to the president for approval. The ordinance is aimed at empowering RBI to deal more effectively with stressed assets than earlier. A senior finance ministry official said "Its part of a broader plan to resolve bad loans with banks' issue that has been a major hurdle in the economy from achieving its full potential."
