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Outcomes of RBI board meeting
Why is it in the news ?
- The very crucial RBI board meeting concluded with detailed and deliberate talks.
- The government and the RBI stepped back from the brink and found a middle ground, giving both sides crucial space to revisit their positions.
More in the news
Issues debated:
- The most contentious issue that the central bank and finance ministry locked horn was the issue of RBI’s capital.
- Issues of transfer of surplus reserves and relaxing norms for weak banks were referred to committees.
- The membership and terms of reference of the committee will be decided by the finance minister and RBI governor.
- Another significant decision was relief to the micro, small and medium enterprises.
- The board has advised RBI to let banks recast loans up to Rs.25 crore given to micro, small and medium enterprises (MSMEs).
- The contentious issue of liquidity-particularly pertaining to non-banking financial companies (NBFCs)-is yet to be addressed to the satisfaction.
RBI Board
- 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 board is appointed by the Government of India in keeping with the Reserve Bank of India Act.
Constitution :
- Official Directors
- Full-time : Governor and not more than four Deputy Governors
- Non-Official Directors
- Nominated by Government: ten Directors from various fields and two government Official
- Others: four Directors - one each from four local boards.
Source
The Hindu, LiveMint.