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RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

RBI board decides to constitute expert committee to examine ECF; membership and terms of reference of the committee will be jointly determined by govt and RBI

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Urjit Patel  |  Rbi Meeting  |  Raghuram Rajan

BS Web Team  |  New Delhi 

The Reserve Bank of India (RBI) board on Monday decided to set up a high-powered committee to examine issues related to surplus capital of Rs 9.69 trillion with the central bank and advised it to consider a scheme for restructuring stressed assets in the MSME sector. At a nine-hour-long meeting of the board, it was also decided that the Board for Financial Supervision (BFS) of the RBI would examine the issues concerning the banks that are under the Prompt Corrective Action framework, according to a release. ALSO READ: RBI and govt signal truce on demand ...

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RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

The board, while deciding to retain the CRAR at 9%, agreed to extend the transition period for implementing the last tranche of 0.625% under the Capital Conservation Buffer (CCB), by one year, i.e., up to March 31, 2020. 

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

On PCA    With regard to banks under PCA, it was decided that the matter will be examined by the Board for Financial Supervision (BFS) of RBI.

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

On MSMEs    The board also advised that the RBI should consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to 250 million, subject to such conditions as are necessary for ensuring financial stability.

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

On RBI capital framework   The board decided to constitute an expert committee to examine the Economic Capital Framework (ECF)   The membership and terms of reference of which will be jointly determined by the Government of India and the RBI  

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

RBI issues its official release on what transpired during the board meeting. 

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

The Finance Ministry and the RBI, together, will decide on the composition of the committee to look into the RBI capital reserves framework, reports CNBC-TV18's Shereen Bhan. Fin Min and RBI to together decide on composition of committee to look into the RBI capital reserves framework. Committee to look into the future not the past #Banking @CNBCTV18Live @CNBCTV18News — Shereen Bhan (@ShereenBhan) November 19, 2018

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

Existing committee of the RBI to look at the PCA framework to see if certain banks under the PCA should be given some relaxation, reports CNBC-TV18's Shereen Bhan, citing unnamed sources.  Sources say existing committee of the RBI to look at the PCA framework to see if some banks under PCA should be given some relaxation @CNBCTV18Live @CNBCTV18News #CNBCTV18Exclusive — Shereen Bhan (@ShereenBhan) November 19, 2018

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

The RBI will allow loan restructuring for MSMEs, reports CNBC-TV18, citing what unnamed sources told news agency Reuters. #RBIBoardMeet | @RBI to allow loan restructuring for Small & Medium Enterprises: Sources to Reuters#GovtVsRBI pic.twitter.com/aYYsoeC3Z2 — CNBC-TV18 (@CNBCTV18Live) November 19, 2018  

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

The RBI board meeting ended on a 'cordial note', reports CNBC-TV18, citing what unnamed sources told news agency Reuters. 

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

RBI will form a panel to review its surplus funds and transfer to the government, reports CNBC-TV18, citing what unnamed sources told news agency Reuters. #RBIBoardMeet | RBI to form panel to review RBI's surplus funds & transfer to Government. RBI board meeting ended on a 'cordial note': Sources to Reuters — CNBC-TV18 (@CNBCTV18Live) November 19, 2018

RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

RBI will take measures on improving liquidity and ease restrictions on select state-run banks' reserve ratio, reports CNBC-TV18, citing what unnamed sources told news agency Reuters. #RBIBoardMeet | @RBI to take measures on improving liquidity & to ease restrictions on certain state-run banks' reserve ratio: Sources to Reuters pic.twitter.com/zt6nNTeoJC — CNBC-TV18 (@CNBCTV18Live) November 19, 2018

First Published: Mon, November 19 2018. 11:38 IST
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RBI meeting highlights: Panel to look at ECF; RBI to consider easing PCA

RBI board decides to constitute expert committee to examine ECF; membership and terms of reference of the committee will be jointly determined by govt and RBI

The Reserve Bank of India (RBI) board on Monday decided to set up a high-powered committee to examine issues related to surplus capital of Rs 9.69 trillion with the central bank and advised it to consider a scheme for restructuring stressed assets in the MSME sector. At a nine-hour-long meeting of the board, it was also decided that the Board for Financial Supervision (BFS) of the RBI would examine the issues concerning the banks that are under the Prompt Corrective Action framework, according to a release. ALSO READ: RBI and govt signal truce on demand ...

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