Glad govt acknowledged independence of RBI: Chidambaram

Hope Urjit Patel and His Team Have a Spine to show Mr Modi his place Rahul Gandhi tweets

The Congress has accused the Modi government of destroying every institution in the country and the latest one being the Reserve Bank of India.

Sources indicate there were detailed presentation by RBI on the issue of economic capital as well as other issues like prompt corrective action framework.

The Government and the Reserve Bank of India on Monday pulled back from the brink after a public spat over the last few weeks with the central bank and the board reaching an agreement on providing relief to small and medium firms and easing lending restrictions on some state-owned banks.

The Reserve Bank of India will form a panel to study the transfer of its surplus reserves to the government, Sachin Chaturvedi, one of the members of the 18-member board, said in an interview to Bloomberg News.

The government's other suggestion to transfer excess reserves to the Centre, however, is likely to be decided by an expert committee to be set up by RBI.

The most contentious issue that the central bank and finance ministry locked horn was the issue of RBI's capital. "There was a big discussion on the past reserves of the RBI". The meeting is taking place as the government has sought a discussion on governance in the central bank and appropriate capital framework. "On extension of the timeline for the capital conservation buffer, I think it is better to defer it because that gives a lot more capital to the bank since we were anyway compliant with Basel", Abizer Diwanji, Partner, EY, told BloombergQuint. Sources said that the BFS is expected to release some of the banks from the PCA framework in the wake of improvement in their operations. The BFS is expected to discuss the PCA issue in its December 6 meeting. However, the central bank has been averse to the government's demand as it considers the sectors to be vulnerable.

Artists reacted to the death of the Creator of marvel comics
"The assumption [used to be] that comics were for kids, and when you grew up you moved on to big-boy books without the pictures". Maher continued: "But then twenty years or so ago, something happened - adults decided they didn't have to give up kid stuff".

RBI, which had taken a stern stance, is likely to relax the PCA norms only on those banks that are showing signs of a turnaround through faster resolution of non-performing assets (NPAs) and shedding of non-core assets. The government had interpreted the RBI's April 2017 revised framework in a way that banks need to register at least two years of profit to come out of PCA, sources said.

"The Board also advised that the RBI should consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to ₹250 million [₹25 crore], subject to such conditions as are necessary for ensuring financial stability", RBI said. "There is no proposal to ask RBI to transfer Rs 3.6 or 1 lakh crore, as speculated", Economic Affairs Secretary Subhash Chandra Garg tweeted.

The RBI was not convinced about a special refinance window for NBFCs, as it has been maintaining it in the past. It may also be open to injecting liquidity through open market purchases of bonds but is resisting relaxing capital buffers for banks.

The RBI Board meeting has been going on for over seven hours now. "Everyone wanted to find a solution instead of public bickering", the person said.

In the run-up to the board meeting, former Finance Minister P Chidambaram said Patel should step down if the board were to issue any direction to it on parting of capital reserves or relaxation of norms.

Related News:

Most liked

Manchester United 'eye Jordan Pickford move'
Spain will only qualify for the Nations League Finals if England and Croatia draw in their decider at Wembley on Sunday, but they can not be relegated from League A.

Tekashi 6ix9ine Has Been Arrested on Federal Crime Charges
Last week the rapper revealed in an Instagram clip that he had dismissed his entire staff, including his manager and his booker. He said, 'I don't got no manager, I got no booking agent, no PR, no publicist, I don't got nobody on my team - it's just me'.

Wizards willing to move anyone in trade, including John Wall, Bradley Beal
The Washington Wizards appear to be open for business and nobody is off limits. That's a lot, especially for a point guard with a history of knee injuries .

Alexander Zverev charms crowd after beating Novak Djokovic
Zverev booked his spot in the decider in London with a hard-fought 7-5 7-6 (7-5) victory over Federer in their semi-final. Novak Djokovic has produced an unbelievable gesture for the man who's been driving him around London for the ATP Finals.

Democratic Senators File Lawsuit Challenging Matt Whitaker’s Appointment as Acting Attorney General
District Court for the District of Columbia" and seeks to stop him from exercising powers of the U.S. attorney general. He added: "The reason is simple: Whitaker would never pass the advice and consent test".

Anti-Pelosi Democrats Sign Letter Committing to Voting Against Her for Speaker
Trump has tweeted his respect and support for Pelosi and even offered to round up GOP votes to help elect her speaker. "However, we also recognize that in this recent election, Democrats ran on and won on a message of change".

We were more than soulmates, Diddy pays tribute to Kim Porter
The actor and rapper had a heartfelt message for Diddy and his children, saying, "I wish you all the best. Porter once said about their relationship: "Sean and I have this bond, this friendship".

Danny Willett wins season-ending event
But he fell eight shots behind leaders Danny Willett and Patrick Reed , who are on 14 under with one round to play. For that to happen on a Sunday in the position I was in, I knew I was in a good place".

Redskins QB Smith carted off field vs. Texans
Seriously, what are the odds of those things happening? Smith will undergo surgery and miss the remainder of the season. Yes, Smith has had a down season compared his career-year with the Chiefs but the Redskins are still in first place.

Missing Argentinian submarine reportedly found a year after it vanished
He said they were notified last Thursday night that the company had reviewed all the maps it had and found the point of interest. The vessel was found in an underwater canyon with its tail partially "imploded", Argentina's Defense Minister Carlos Aguad said.

Ryan Reynolds Shares 'Once Upon A Deadpool' Trailer On Twitter
And it even has me thinking that a genuinely amusing Deadpool film is actually possible with a PG-13 rating...boy am I curious. And according to Collider , they did shoot new scenes for this version, like that Up reference in the middle of the trailer.

Apple Stock Is Falling on New Report of iPhone Production Cuts
Apple surprised its investors when it forecasted lower-than-expected iPhone sales predictions for the upcoming holiday season, and Christmas quarter.

Priyanka Chopra Supports Nick Jonas On 13-Year Anniversary Of Diabetes Diagnosis
Jonas says he now has full control of his daily activities and will not let the disease stop him from living life to the fullest. Means more than you know. 'I love that you can register for fitness ietms, music and games all in one place, ' she explained.

Google is letting users watch full free, ad-supported movies on YouTube
The latest stats reveal that we've already reached a point where 20 percent of YouTube is watched via a smart TV and it's growing. This marks the first time that YouTube has offered free streaming films in exchange for users watching ads.

Bennett, Shaked stay in the government despite threats to resign
Elections now are slated for November 2019, but no Israeli coalition in the past 30 years has served out its term. Netanyahu met Bennett on Friday, but conflicting reports emerged.