RBI Board Meet

Why is it in the news ?
  • The central board meeting that held on 14th December  has decided to further examine the governance framework of the central bank.
  • It was the first board meeting under new RBI governor Shaktikanta Das.
More in the news
    • The board reviewed various issues, such as:
      1. Current economic situation,
      2. Global and domestic challenges,
      3. Matters relating to liquidity and credit delivery to the economy, and
      4. Issues relating to currency management and financial literacy.
        Contentious issues:
RBI reserves:
  • The issue of transfer of RBI reserves, which stood at Rs.9.43 lakh crore as of June 2018, to the government has been one of the contentious issues between the government and the central bank for a long time and also is seen as one of the key reasons for Urjit Patel’s resignation.
Prompt corrective action (PCA):
  • At the last board meeting, the RBI board had also decided to refer the issue of relaxing the prompt corrective action (PCA) framework—under which are 11 of the 21 public sector banks—to the board of financial supervision of the central bank.
  • The board deliberated on the governance framework of the Reserve Bank and it was decided that the matter required further examination.
RBI Board
    • The Central Board of Directors is at the top of the Reserve Bank’s organisational structure.
    • Important decisions of the RBI are taken by the Central Board as it is the apex authority of the RBI.
    • The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.
    • Constitution:
    • Official Directors
    • Full-time : Governor and not more than four Deputy Governors
    • Non-Official Directors
    • Nominated by Government: ten Directors from various fields and two government Official
    • Others: four Directors - one each from four local boards.
Source
The Hindu, LiveMint.



Posted by Jawwad Kazi on 15th Dec 2018
<< Previous Next >>