President Pranab Mukherjee today gave his assent to an ordinance to amend the Banking Regulation Act for resolution of the non-performing asset (NPA) crisis in banking system. This ordinance will give greater powers to the Reserve Bank to tackle mounting bad loans. The amendments to the Act will help in effectively resolving the bad loans problem. Bad loans have ballooned in the system over the past few years, with gross NPAs for state-owned banks at 6.07 lakh crore rupees at the end of December 2016. <br/><br/>Briefing reporters in New Delhi Finance Minister Arun Jaitley said, in the last few years, the government has taken several structural reforms towards the economy but the stressed assets remains a challenge. Mr Jailtey said, the government and RBI will work together on expeditious resolution of stressed assets.<br/><br/>AIR correspondent reports, the government has enacted insolvency and Bankruptcy Code to consolidate and amend the laws relating to reorganization and insolvency resolution of companies, partnerships firms and individual.