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Finance Ministry Reviewing Npa Rules

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Last Updated : Sep 10 1998 | 12:00 AM IST

The finance ministry is taking a look at the present guidelines prescribed on non-performing assets in view of representations from various quarters, said union finance minister Yashwant Sinha at an interactive session with the Confederation of Indian Industry (CII), western region here.

"There have been representations that NPA norms be relaxed, but our norms are still more liberal than the international standards," he said. "We are looking into what can be done about this," he added, reiterating that the financial reforms will be carried on.

The CII had in fact, asked the government to consider a relaxation of NPA norms and even suspension, in some cases, in order to help the industries affected by the slowdown to get over the crisis without the banks' bottomlines taking a hit.

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On insurance, he said the amendments to the IRA, LIC and GIC Acts would be taken up only in the next session of Parliament and the issue of nature of the private entrants would be taken up in that time.

"The issue is no longer whether the private participation can be allowed in the insurance sector, but whether it will be opened up only to Indian private companies or foreign equity holding would also be allowed," he said.

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First Published: Sep 10 1998 | 12:00 AM IST

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