Govt upset with RBI for being kept in the dark about PCA, NPA norms

Officials say there was no discussion in any board meeting, govt does not know the rationale behind revising the framework and how RBI arrived at it

Amid differences between the Reserve Bank of India (RBI) and the finance ministry, officials said the government was upset with the central bank for not consulting it before finalising norms for prompt corrective action (PCA) and classification of non-performing assets (NPAs). The RBI did not discuss these at its board meetings either, a senior government official said.

“The PCA framework was revised and tightened in April 2017, but there was no discussion in any board meeting. The government does not know the rationale behind revising the framework and how the RBI arrived at it. Similarly, there was no discussion in