For Quick Alerts
For Daily Alerts

RBI Board Meeting Concludes; Decides To Work On Economic Capital Framework


The Reserve Bank of India ended its 9-hour long central board meeting in Mumbai today and concluded with decisions to constitute a committee so as to examine the regulator's Economic Capital Framework as the government requests for "excess" reserves to be transferred to it, restructure scheme for stressed SMSEs (small and medium enterprises) and marginally relax the Basel norms applicable to banks.

RBI Board Meeting Concludes; Decides To Work On Economic Capital Framework

The concluding statement released by the RBI said, "The Reserve Bank of India's (RBI) Central Board met today in Mumbai and discussed the Basel regulatory capital framework, a restructuring scheme for stressed MSMEs, bank health under Prompt Corrective Action (PCA) framework and the Economic Capital Framework (ECF) of RBI. The Board decided to constitute an expert committee to examine the ECF, the membership and terms of reference of which will be jointly determined by the Government of India and the RBI. 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 ₹ 250 million, subject to such conditions as are necessary for ensuring financial stability. The Board, while deciding to retain the CRAR at 9%, agreed to extend the transition period for implementing the last tranche of 0.625% under the Capital Conservation Buffer (CCB), by one year, i.e., up to March 31, 2020. With regard to banks under PCA, it was decided that the matter will be examined by the Board for Financial Supervision (BFS) of RBI."

Read more about: rbi
Story first published: Monday, November 19, 2018, 21:36 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more