Govt to press hard to align RBI regulations with international norms

The Union government will continue to push the Reserve Bank of India (RBI) to align its regulatory capital norms and the prompt corrective action (PCA) framework with Basel-III guidelines, an international regulatory framework for banks, in a crucial meeting next week.

In the regulator’s central board meeting, it will ask the RBI to ease provisioning norms for micro, small and medium enterprises (MSMEs) to bring them in line with the Basel framework. Government representatives will also be present in the meeting on Monday.

The government has argued while the Basel framework requires the application of minimum capital norms to internationally