RBI board meeting ends on conciliatory note
New Delhi, Nov 19 (IBNS): As the marathon meeting of the board of Reserve Bank of India (RBI) came to an end in Mumbai on Monday evening, the central bank agreed to set up a panel on sharing surplus reserves.
It also proposed a scheme for restructuring loans up to Rs. 25 crore for small businesses.
In a consensus between the government and the central bank, the RBI announced that it would inject Rs. 8,000 worth of liquidity into the system through open market operations on Nov 22.
The meeting happened amid an ongoing rift between the government and the central bank.
The RBI had earlier alleged that the Centre is making attempts to undermine its autonomy.
The board meeting was presided by the Finance Ministry nominees and some independent directors.
The government has recommended to the board of the Reserve Bank to draft regulations to enable setting up of panels to oversee functions.
These functions would include financial stability, monetary-policy transmission and foreign-exchange management.
Despite RBI board's advisory capacity, Governor Urjit Patel and his team were reportedly taking their own decisions.
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