Reserve Bank of India’s board will meet today – the first meeting to be held after Shaktikanta Das assumed charge as new governor of the central bank. Das, a former finance secretary, took office two days after Urjit Patel abruptly resigned as governor on Monday. The 18-member board, which includes monetary policy makers, finance ministry representatives and industrialists, is expected to discuss issues relating to easing of lending restrictions on some of the country’s weakest state-run banks. RBI’s board may also focus on liquidity in the financial system. The board at the November 19 meeting had agreed to set up a committee to determine the appropriate levels of reserves the central bank ought to hold.
The new RBI chief on Thursday met with the heads of public sector banks who sought some relaxations in the prompt corrective action (PCA) framework and the one-day default norms announced by the RBI in its February 12 circular. Das, along with his four deputy governors, discussed various issues being faced by the banks, including that on liquidity situation, and also deliberated on the crisis in the non-bank lenders space.