New Delhi, Nov 19: The crucial board meeting of the Reserve Bank of India (RBI), which was held on several issues that caused a rift between the central bank and the government, concluded today after nine gruelling hours of discussions. Contrary to expectations, the RBI board meeting is said not to have ended on a sour note.
According to reports, when RBI governor Urjit Patel and his deputies came face to face with govt nominee directors — DEA secretary Subhash Chandra Garg and finance secretary Rajiv Kumar — and independent members like S Gurumurthy, discussion on a range of contentious issues took place.
FULL TEXT of RBI after board meeting in Mumbai on Monday
The Reserve Bank of India’s (RBI) Central Board met today in Mumbai and discussed the Basel regulatory capital framework, a restructuring scheme for stressed MSMEs, bank health under Prompt Corrective Action (PCA) framework and the Economic Capital Framework (ECF) of RBI.
The Board decided to constitute an expert committee to examine the ECF, the membership and terms of reference of which will be jointly determined by the Government of India and the RBI. The Board also advised that the RBI should consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to 250 million, subject to such conditions as are necessary for ensuring financial stability.
The Board, while deciding to retain the CRAR at 9%, agreed to extend the transition period for implementing the last tranche of 0.625% under the Capital Conservation Buffer (CCB), by one year, i.e., up to March 31, 2020. With regard to banks under PCA, it was decided that the matter will be examined by the Board for Financial Supervision (BFS) of RBI.