RBI board meeting gets underway
December 14, 2018  12:03
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The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks.


This is the first board meet chaired by the newly- appointed Shaktikanta Das, who took over as the 25th governor on Wednesday.


In the previous board meeting, held on November 19, the board had decided to constitute a committee of experts to fix the appropriate level of economic capital framework that the central bank should hold at any given time and the membership and terms of reference of which will be jointly determined by government and RBI.


The issue of transfer of RBI's excess reserves, which stood at Rs 9.43 lakh crore as of June 2018, to the government has been one of the contentious issues between the government and the central bank for a long time and also one of the key reasons for the sudden resignation of Urjit Patel Monday.


The 18-member RBI board will also deliberate on relaxation of prompt corrective action norms. Of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders. -- PTI
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