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RBI board meets new governor Shaktikanta Das about governance framework

In the last board meeting held on November 19, the board had decided to set up an committee to examine the economic capital framework of the central bank.

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Shaktikanta Das, the new RBI Governor
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The central board of the Reserve Bank of India (RBI) met with new Governor Shaktikanta Das on Friday and discussed the governance framework for the central bank. "The board deliberated on the governance framework of the RBI, and it was decided that the matter needs further examination," RBI said in a statement after the meeting.

In the last board meeting held on November 19, the board had decided to set up an committee to examine the economic capital framework of the central bank. The mandate of the committee is to decide on the optimum reserves that the central bank needs to keep as contingency and revaluation reserves.

The board meeting — the first after former RBI governor Urjit Patel resigned — lasted for four hours where deliberations on credit flow and liquidity issues were discussed. The half yearly results of the 11 banks under prompt corrective action (PCA) was discussed at length as a step towards reviewing the framework which imposes lending restrictions, dividend distribution and other expenditure curbs on banks with a large overhang of NPAs.

"The board also discussed the credit flow to micro, medium and small industries as well as the liquidity issues for the NBFCs," said a source.

It reviewed the current economic situation both global and domestic challenges, currency management and financial literacy. The 18 member board which was meeting at the RBI head quarters at Mint Street in Mumbai also discussed the draft report on Trend and Progress in Banking (2017-18)

"The Board reviewed, 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," RBI release stated.

Banks under PCA are three Kolkata-based banks like Allahabad Bank, United Bank of India and UCO Bank, Mangalore-based Corporation Bank, Mumbai-based IDBI Bank, Bank of India, Central Bank of India and Dena Bank. Chennai-based Indian Overseas Bank, Delhi-based Oriental Bank of Commerce, and the Pune-based Bank of Maharashtra.

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