Cabinet decisions

Govt clears changes in laws to deal with bad loans

new delhi: The Union Cabinet on Thursday approved the Enforcement of Security Interest and Recovery of Debts Laws Amendment Bill,2011 that will facilitate the process of recovery of bad loans for banks at a time when non-performing assets in the banking sector are on the rise. The suggested amendments would strengthen the ability of banks to recover debts due from borrowers,enhance the ability of the banks to extend credit to both corporate and retail borrowers,reduce the cost of funds for banks and their customers and reduce the level of non-performing assets,an official statement said on Thursday.

IIFCLs capital base hiked to R5K crore; brought under RBI

new delhi: The Cabinet also approved the proposal to bring India Infrastructure Finance Company Ltd IIFCL under regulatory oversight of the Reserve Bank of India RBI,to enhance its professional capability and increase its capital base. As per the proposal,the company will now be registered as a non-banking finance company NBFC with the Central bank and the oversight committee on IIFCL will be dispensed with. The Cabinet approved an increase in the authorised capital of IIFCL from Rs 2,000 crore to Rs 5,000 crore with a provision that it may be further increased to Rs 8,000 crore with the approval of the finance minister.