A crucial meeting of the Reserve Bank of India's (RBI's) central board concluded on Monday amid a rift between the central bank and the government over key issues. The marathon meeting lasted for close to nine hours.
The RBI has an 18-member board, which also includes four deputy governors, government nominees -- Department of Economic Affairs Secretary S C Garg and Financial Services Secretary Rajiv Kumar, besides non-official directors, including S Gurumurthy and Satish Marathe.
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 forrestructuring 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.
Press Release : 2018-2019/1165 Chief General Manager