RBI board meet today, the first with Shaktikanta Das at the helm

Dwayne Harmon
December 14, 2018

"We sought easing of PCA norms as 11 of the 21 lenders are under this restricted-lending framework", the newspaper quoted another banker as saying.

Rice added that the International Monetary Fund had "taken note of" the resignation of Mr. Patel as the governor of the RBI and the appointment of Mr. Das as his replacement. At a meeting in November, the central bank had agreed to form a panel to study its capital structure.

Market participants are hopeful that the new governor will be more communicative and sympathetic to their concerns. "I would not like to go into what the issues between the government and the RBI are but every institution has to maintain its autonomy and also adhere to accountability". "Personal frictions between the main actors - now that doesn't exist".

Inside the board, Gurumurthy offered resistance to Patel. Bankers said the one-day default rule introduced by way of the February 12 circular of RBI had been discussed threadbare.

In the previous board meeting, held on November 19, the board had made a decision to constitute a committee of experts to fix the appropriate level of economic capital framework (ECF) that the central bank should hold at any given time and the membership and terms of reference of which will be jointly determined by government and RBI. "Govt is not just a stakeholder but also runs the country, economy&manages major policy decisions". As revenue secretary, he worked closely with Finance Minister Jaitley and the empowered committee of state finance ministers to break the deadlock and draw up the draft legislation.

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The central bank will also hold consultations with the chiefs of PSBs headquartered outside Mumbai.

Gadkari, who handles many key infra ministries, wondered if government is held responsible for the economic situation, then how can RBI work autonomously. The latter had been at the forefront of new lending in the past three years, which in turn fueled domestic consumption and economic growth.

The comments come days after the past governor Urjit Patel suddenly resigned + in protest following a host of issues with the government, including those on autonomy and its operational integrity, and the appointment of ex-bureaucrat Shaktikanta Das + as the new governor, who has been the pointsman of the Modi government during the controversial note-ban months, within a day of Patel calling it quits. They dropped Friday after crude prices regained some ground.

"Everywhere there are ups and downs and we have not destroyed any institutions".

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