The Reserve Bank of India’s (RBI) Central Board held the first ever board meeting under the leadership of the newly appointed governor Shri Shaktikanta Das, today in Mumbai. The central board was expected to address the ongoing liquidity crisis and the conflict between government and RBI on PCA norm, however, no major decisions were made.
The issue of RBI’s structure of governance has been a point of conflict between the government and the central bank. While regarding the matter, RBI in a statement release said: “The Board deliberated on the Governance Framework of the Reserve Bank and it was decided that the matter required further examination.”
RBI also said in the statement: “The Board reviewed, inter alia, the current economic situation, global and domestic challenges, matters relating to liquidity and credit delivery to the economy, and issues related to currency management and financial literacy. The draft report on Trend and Progress of Banking in India (2017-18) was also discussed.”
The board which avoided making any crucial announcements applauded the efforts of previous RBI governor. “The Central Board placed on record its appreciation of the valuable services rendered by Dr Urjit R. Patel during his tenure as Governor and Deputy Governor of the Bank,” RBI said in the statement.