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The Lok Sabha on Thursday passed the Banking Regulation Amendment Bill 2017.
The bill was introduced in the lower house of the Parliament by minister of finance, Arun Jaitley on 24 July .
It seeks to reform the Banking Regulation Act, 1949 to insert provisions for handling cases related to stressed assets.
In May this year, the bill was propagated. It will replace the Banking Regulation (Amendment) Ordinance, 2017.
As per the provisions of the bill, the centre may direct the Reserve Bank of India (RBI) to issue directions to banks for initiating proceedings in case of a default or failure to meet the legal obligations or conditions of a loan.