RBI board meeting on Monday; Achievement of common land on some of the key issues


NEW DELHI: It is expected that the executive room with the government will play at the crucial board meeting of the RBI on Monday, with the Ministry of Finance and some independent directors' advocates; expecting the Governor of Urjit Patel and his team on issues ranging from MSME to middle bank resources, although both sides of the country; welcome common land.

Although reports and requests from some of the areas for the Governor have stepped down, the sources said that it is unlikely that Patel is under pressure and that it will be best to protect defensive media policies ; Bank in terms of the strong identity of NPA as well as measures taken to resolve the provision of credit to MSMEs.

Patel and its four constituents, all of which are members of the 18-member RBI board, have an integrated attendance show, and there are also some independent directors. expect to support a disassembly mission to & # 39; bank balance cleaning, stores said.

It is anticipated that the middle board, with the head of the RBI Governor, will consider issues referred to in the agenda to the members of the board in advance.

Items outside the table can also be built in the meeting, with permission to & # 39; chairman.

At this time there are 18 members at the RBI's central board, although the provision is that it can up to 21.

The members include Governor Urjit Patel and his four chairs as & # 39; full-time official directors, and the remaining 13 are nominated by the government, including two Finance Ministry officials – Secretary of Economic Affairs and Secretary of Finance Services.

Stocks say that the government and the Indian Reserve Bank (RBI) are trying to reach at an agreed solution to the # resting of the Advanced Business (PCA) framework and reducing loan habits for the MSME division.

If this board meeting is not available, The situation agreed about the suspension of the PCA framework in the last few weeks, they added to it.

Due to the calmness, some of the banks may come out of the PCA framework by the end of this report.

Out of the 21 state-owned banks, 11 are under the PCA framework, which gives loans and other restrictions on weak lenders.

These are Allahabad Bank, Bank of India, Corporate Banking, IDB Bank, UCO Bank, Indian Bank, Central Bank of India, Overseas Indian Bank, East Bank Bank, Dena Bank and Bank Maharashtra.

The PCA framework will start when banks have a Breaking one of the three main regulatory promotional points – a joint capital asset risk, non-active assets (NPA) and return to resources (RoA).

In the globe, PCA does not start only when banks have a stretching one parameter of capital suitability equity, and the government welcomes its capital; This is also used for a domestic banking department.

It is also expected that the RBI will consider a specific license for small, small and medium-sized enterprises (MSMEs) and non-banking financial companies (NBFC) that have faced liquidity issues.

The government is confident that there is a MSME section – which is a 12 crore and who play a huge role in the economy – needing support after the impact on the determination and implementation of Product and Product Charges (GST).

However, the middle bank has opposed the government's request because it considers the areas are vulnerable.

At the same time, Finance Minister Arun Jaitley said Saturday that growth should not be screened by constraining the availability of credit and clarity.

It is imperative that the growth process does not suffer the banking system to be cleared from the "related sins" in 2008-14 when the regulatory procedures were also in place; looking over high debt, he said.

With regards to illness with her & # 39; chief bank, the Finance Ministry had sought queries under Section 7 of the previously used RBI Act which empowers the government to give directions to the RBI Governor.

RBI Deputy Governor Viral Acharya had spoken last year's speech on central bank independence, arguing that any negotiations could be "likely to be liable "for the economy.

In his first public comments from the spat between the RBI and the Ministry of Finance out in the opening, ideologue Swadeshi said the April was on the week it was said that ; case "a really rude thing".

Gurumurthy, who was recruited on an RBI board a few months ago, stated that the capital suitability ratio identified in India was 1 per cent higher than the Basel global rules. He also expressed the intention to minimize lending for small and medium-sized enterprises, which, account for 50 per cent of the country's GDP.

Last month, the RSS-related Manch Swadeshi Jagran said that the RBI Governor should work in accordance with the government or retirement.

"The Governor of the Indian Bank should work out in support of the government or retirement," said convener SJM, Ashwani Mahajan.

Source link