RBI may blink on PCA, not on NBFC window in today's board meeting

Govt has made up its mind it will not use a contentious provision of the RBI Act to issue directions on its suggestions to the central bank, sources said

The Reserve Bank of India (RBI) may agree to bring some public sector banks (PSBs) out of the prompt corrective action framework (PCA), but it is not likely to accede to the government’s demand to set up a special refinance window for non-banking financial companies (NBFCs) at the board meeting of the central bank on Monday, sources said.

Some banks may be brought out of the PCA framework, an early warning tool used by the RBI, if the government agrees to the central bank’s terms related to fulfilling their capital needs, said sources privy to the discussions between the Centre and