Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
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“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 Rs. 250 million [Rs. 25 crore] , subject to such conditions as are necessary for ensuring financial stability,” the RBI said. On the issue of capital adequacy ratio, after much deliberations to reduce it to 8%, it was finally retained at 9%. However, the deadline for implementing the last tranche of 0.625% under the capital conservation buffer (CCB), has been extended by one year, that is, up to March 31, 2020. Two other important issues that could not be discussed — liquidity for non-banking financial companies and governance issues of the RBI — and those will be taken up in the next board meeting, scheduled on 14 December, sources said.
The board meeting proceeded amicably contrary to expectations, they added. The tension between the RBI and the government started after the latter referred to section 7 of the RBI Act for consultation on these issues. Section 7 gives the power to the government to issue directions to the RBI.
