RBI meeting ends with truce on govt demand for transferring surplus funds

In a nine-hour meeting at the RBI headquarters, the central bank's board decided to constitute an expert committee to examine the economic capital framework (ECF) of the central bank

The government and the Reserve Bank of India (RBI) seemed to have ironed out their differences for now, as both camps showed flexibility on a number of issues that were considered to be flashpoints between the two.

The board decided to set up a panel for transfer of the RBI’s surplus funds to Centre, review the prompt corrective action (PCA) framework, frame a restructuring scheme for stressed micro-, small- and medium enterprises (MSMEs) loans and relax a component of capital adequacy norms by one year. 

In a nine-hour meeting at the RBI headquarters, the central bank's board decided to constitute