Banking regulation (amendment) ordinance, 2017: A resolute ordinance?

This paper is a write up on the recent Banking Regulation (Amendment) Ordinance, 2017, which is yet another step in a series of initiatives taken to resolve stressed assets in the Indian banking system. An ordinance to this effect was promulgated over a “bad bank” idea as such an entity would itself be a warehouse of stressed assets and not a resolution mechanism. The paper provides an overview of stressed assets, aim of the ordinance, immediate steps taken by RBI after the promulgation of ordinance, and the looming questions that still remain pertaining to resolution of stressed assets.