An ordinance empowering the Reserve Bank of India (RBI) to tackle bad loans of banks got the Presidential nod on Friday.

President Pranab Mukherjee signed the ordinance that will amend the Banking Regulation Act to tackle the burgeoning non-performing assets of banks.

The ordinance was sent to the President after it was cleared by the Union Cabinet on Wednesday.

"This ordinance will enhance the power of RBI to manage bad loans," Minister of State for Finance Santosh Kumar Gangwar said.