RBI board to consider surplus fund transfer, ease norms for weak bonds

Board to examine stringent capital norms for Indian banks

The board of India’s central bank will meet on Monday to consider easing rules governing transfer of surplus funds to the government as well as liberalizing norms for weak banks to boost lending in the economy, people with knowledge of the matter said.

The Reserve Bank of India will also review rules on capital and risk weight for Indian banks which are considered more stringent than the Basel guidelines. Other proposals on the agenda include restructuring of loans upto 250 million rupees ($3.5 million) availed by micro, small and medium enterprises.

The transfer of surplus reserves has been a flash