RBI board meeting News

Given the current structure, the central board plays advisory role but there is growing clamour to make it operational and have greater participation in key decisions of the central bank.

Tensions could re-surface on December 14 as the government aims to ramp up pressure for changes in the way the central bank operates.

Further, the apex bank has been advised to consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to such conditions as are necessary for ensuring financial stability, it added.

Out of the 21 state-owned banks, 11 are under the PCA framework at present.

The expert committee to be set up will now decide about the adequate size of capital base.

The Modi government has been pressuring the RBI to reduce capital ratios for banks to speed up loans to small businesses.

The RBI is also expected to consider a special dispensation for MSMEs and NBFCs which have been facing liquidity issues.

The central board, headed by the RBI Governor, is expected to discuss issues mentioned in the agenda circulated to the board members in advance.

In a series of tweets, the former finance minister also claimed that the government and the Reserve Bank of India (RBI) was heading towards a "confrontation" in the Monday's board meeting of the bank.

The information was sought by an RTI activist Venkatesh Nayak.

Amid outrage over Vijay Mallya's massive default on loans, Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan on Saturday cautioned against overstating the bad loans crisis in the banking system lest it hampers the entire lending operations and growth.