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 banks 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. Finance Minister Nirmala Sitharaman said on Thursday that the a committee would examine how to modify regulations for cooperative banks 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 banks will have to decide who they want to lend
The board also discussed “the role of payment banks and small finance 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, Finance Secretary and Secretary, Department of Financial Services and Atanu Chakraborty, Secretary, Department of Economic Affairs.