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Reserve Bank board discusses commercial, co-operative banks, NBFCs

The meeting assumes importance after the Punjab and Maharashtra Cooperative Bank scam and the general liquidity deficit in the NBFC sector

Anup Roy  |  Mumbai 

PMC Bank

The Reserve Bank of India’s (RBI’s) central board met on Friday in Chandigarh and discussed the current state of the financial sector, with special focus on the regulatory and supervisory architecture of commercial, co-operative and non-banking financial companies.

The meeting assumes importance after the Punjab and Maharashtra Cooperative (PMC) Bank scam and the general liquidity deficit in the NBFC sector. However, the banking system continues to be flushed in liquidity. Minister Nirmala Sitharaman said on Thursday that the a committee would examine how to modify regulations for so that PMC- like incidents don't take place.

In the post-policy conference with analysts, RBI’s deputy governor NS Vishwanathan, however, clarified that the RBI has no plan to have a credit line for NBFCs, but will have to decide who they want to lend

The board also discussed “the role of payment banks and small banks in enhancing financial inclusion.”

The board was chaired by RBI governor Shaktikanta Das, where RBI deputy governors as well as other board members were also present. Government’s directors in the board include Rajiv Kumar, Secretary and Secretary, Department of Financial Services and Atanu Chakraborty, Secretary, Department of Economic Affairs.

First Published: Sat, October 12 2019. 02:08 IST
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