India's cabinet has taken significant decisions on the country's banking sector, Finance Minister Arun Jaitley said, declining to give further details, saying it needed a Presidential accord.

"Some significant decision has been taken on the banking sector in the cabinet, but propriety demands that the government should announce this only after the assent of the President," Jaitley told a news conference after the cabinet meeting.

The government and the central bank have previously said they were working on a new plan for the resolution of bad loans at Indian lenders that hit a record $150 billion as of end-December.