Login With Google
Government wants more say in RBI decision-making
Why is it in the news ?
- Ahead of the crucial board meeting of the central bank, Government hints out for more power in decision making.
- The government wants greater involvement as it feels the current practice leaves it out on many critical issues such as single-day default turning a loan into an NPA.
More in the news
- The government feels that as the representative of the people, it should be involved in critical policy decisions made by the RBI.
- The Central Board of Directors is at the top of the Reserve Bank’s organisational structure.
- Important decisions of the RBI are taken by the Central Board as it is the apex authority of the RBI.
- The central board of the RBI is headed by the governor and includes two government nominee directors and 11 independent directors.
- The board will meet on Monday 19th November where the government is expected to push for various issues. Some of them are :(1) Easing of norms for lending to the MSME sector.(2) Relaxing the Prompt Corrective Action (PCA) framework for weak banks.(3) Appropriate size of reserve to be maintained by the central bank.
Source
The Hindu.