The most awaited board meeting of the Reserve Bank of India(RBI) is scheduled to be held today, November 19.
The RBI board meeting will aim at catering to issues like easier loan sanctions to micro, small & medium enterprises (MSME), relaxation of prompt corrective action (PCA) on weaker banks, and fund transfer to the government.
On November 9, the government said that it was discussing an “appropriate” size of capital reserves that the central bank must maintain, but denied seeking a massive capital transfer from the RBI.
The unprecedented scuffle between the centre and the RBI raised many questions. With the Ministry of Finance initiating discussions about the never used Section 7 of the RBI Act, the relation became more bitter. According to Section 7 of the RBI Act, the government can issue directions to the RBI. There were also speculations that the incumbent RBI governor Urjit Patel might resign.
Furthermore, the meeting is to reach a consensus on issues like payment of dividend to the government.
Moreover, hitting out at PM Modi, Congress chief Rahul Gandhi tweetedRBI meeting, “Hope #UrjitPatel has a spine and will show PM his place.”
Mr Modi and his coterie of cronies, continue to destroy every institution they can get their hands on. Today, through his puppets at the #RBIBoardMeet he will attempt to destroy the RBI. I hope Mr Patel and his team have a spine and show him his place.
? Rahul Gandhi (@RahulGandhi) November 19, 2018