"Can't Say Differences With Centre Over": RBI Board Member On 9-Hour Meet

TNN Bureau. Updated: 11/24/2018 10:25:27 AM Business and Economy

NEW DELHI: Seven hours out of nine spent on the Reserve Bank of India (RBI) board meeting on Monday were taken up by presentation only, news agency TNN has quoted a board member as saying. "We attended the Monday meeting with complete preparation and were not tense. It was an intellectual debate and the meeting was intellectually stimulating," said the member, who didn't want to be identified. Announcements following the marathon board meeting failed to calm investors, as the Street expected implementation of the proposed measures to take time.

Here are 10 things to know about the RBI board meeting:
• The RBI board, in its statement after the meeting, advised the central bank to act to support small businesses and give banks more time to step up capital norms. It also agreed to form an expert committee to look into whether the RBI reserves are adequate; the Centre has pushed for access to surplus reserves built up by the central bank.

• The stock markets tumbled around 1 per cent the next day amid a selloff across sectors, breaking their three-day rising spree. The Sensex ended 300 points lower at 35,474 while the broader Nifty settled at 10,656, 107 points - or 1 per cent - lower from its previous close.

• "The board meeting was chaired by the RBI Governor (Urjit Patel) and attended by four deputy governors. One of the deputy governors NS Vishwanathan gave the presentation on behalf of the RBI," said a source aware of the developments, according to TNN.

• "The presentation was made on Basel norms, MSME (micro, small and medium enterprises) sector and Economic Capital framework. The RBI presentation was purely on the database," he said.

• "After the presentation, discussion took place pointwise," the agency quoted another source as saying.

• Asked whether there was any tension or a heated argument between the Centre and the RBI representatives, he said, "After seven hours of a high-level presentation, we discussed our agenda and finally after two hours the meeting ended in very cordial manner."

• "We can say that speculation in the media for the last 15 to 20 days will stop now, but we can't say that the differences are over. The decisions taken were commonly agreed upon, but on some issues like Prompt Corrective Action (PCA), economic capital, where a committee will take a decision, there are still some differences," the source said.

• From the government side, Secretaries Department of Economic Affairs SC Garg and Department of Financial Services Rajiv Kumar gave presentations. The government nominees' presentation covered the overall current situation of the banking system, Non-Performing assets (NPAs), stressed assets and some sectoral issues like MSME's etc., according to the TNN report.

• The RBI's representatives had their own views and queries on the presentation made by the government nominees. Similarly, the government nominees shared their own views and queries on the presentation made by the deputy governor.

• The central bank board is to meet next on December 14.

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