RBI holds board meeting headed by Shaktikanta Das, says it will further examine governance framework
The central bank also said that the board of directors reviewed the current economic situation in the country.
The Reserve Bank of India on Friday said it has decided to further examine its governance framework. This was decided at a meeting of the central bank’s board of directors, and was headed by Shaktikanta Das, the new governor. Former Governor Urjit Patel resigned from his post on December 10 citing personal reasons.
The RBI said that the board of directors also reviewed “the current economic situation, global and domestic challenges, matters relating to liquidity and credit delivery to the economy, and issues related to currency management and financial literacy”.
This was the first RBI Board of Directors meeting chaired by Das, who took over as the governor on December 11.
At the previous meeting on November 19, the central bank’s board of directors decided that an expert panel set up jointly by the government and the central bank will examine the economic capital framework to decide on matters related to the RBI’s surplus reserves. The directors also decided that the RBI’s Board for Financial Supervision will examine matters related to banks put under the Prompt Corrective Action.
A news report had claimed last month that the government had sought Rs 3.6 lakh crore from the central bank’s reserves – though Economic Affairs Secretary Subhash Chandra Garg dismissed the claim.
Speculation over Patel’s resignation began last month after a rift between the Centre and the central bank became public. The Centre reportedly proposed a change in rules that will enable it to supervise the central bank more closely. The Centre also wants the RBI to ease lending norms for certain banks.
Union minister Nitin Gadkari claimed on Thursday that the central bank is part of the government and has to support the economic vision of the government. He dismissed the Opposition’s claims that the Narendra Modi-led government had “destroyed” the RBI.