RBI board meets today with new worries emerging over its independence


The RBI, however, was not in favour of any relaxation with its deputy governor Viral Acharya recently defending the PCA framework saying that the banks would have incurred even higher losses and required even more of taxpayer money for recapitalisation. But every institution has to have its professional integrity, maintain its professional autonomy.

There was never any intention that RBI " s capital should be transferred to Government.

As economic affairs secretary from 2015 to 2017, Das has worked closely with the central bank.

Any issue, no matter how contentious, can be resolved through discussion, Reserve Bank of India (RBI) Governor Shaktikanta Das said Wednesday.

The 18-member board, which includes monetary policy makers, finance ministry representatives and industrialists, is expected to discuss a proposal by the government for closer supervision of the central bank.

The Appointments Committee of the Cabinet has approved the appointment of Shaktikanta Das for a period of three years after Urjit Patel resigned as RBI Governor.

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.

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"With Das at the helm, we now think the RBI will call a halt to the tightening cycle", Shilan Shah and Mark Williams, economists at Capital Economics, wrote in a note.

Gerry Rice, IMF Director, Communications, said this in response to a question on the recent developments at the RBI.

"The Supreme Court can be an autonomous body".

The new RBI chief also noted that the decision-making has become complex in the past few days.

"There are risks in the business, be it banking or insurance, there are ups and downs.But, if the mistakes are bona fide, forgive him and give him another chance", he said. If a person who was repaying the debt for 40 years, and due to some issues he is not able to meet his debt obligations later, can you declare him a wilful defaulter?

Indirectly blaming the bankers for the NPA mess, Gadkari said our banking system is such that it does not support sick companies. RBI's board may also focus on liquidity in the financial system. "Unfortunately, many times.the circulars issued by the RBI are creating more complications and this is one of the reasons why I am facing problems as far as financial closure is concerned", Gadkari had told an awards function here on November 17.