MSMEs on agenda at Das’ 1st board meet

New Delhi, December 13

The central board of the RBI under new Governor Shaktikanta Das will meet on Friday where the directors are likely to push for greater say in the decision making of the central bank.

The meeting will review the progress with respect of some of the decisions taken in the last meet on November 19. Among other things, the crucial board meeting is expected to take a stock of Micro, Small & Medium Enterprises (MSMEs), which is under stress due to demonetisation and GST implementation.

This scheduled meeting comes in the backdrop of surprise resignation by Urjit Patel this earlier week citing personal reasons. However, the tussle between the Finance Ministry and the RBI was attributed as reason for the sudden exit of Patel, who would have completed his term in September 2019.

Sources said one of the key agenda for the board meeting will be governance issue — the role of central board in the decision making of the RBI. Given the current structure, the central board plays advisory role, but there is growing clamour to make it operational and have greater participation in key decisions of the RBI. The government as one of key stakeholders also wants greater involvement in the RBI’s decision-making as it feels the current practice leaves it out on many critical issues, sources said. — PTI

Gadkari: we have not destroyed RBI

The RBI continues to be by and large an independent body...Even if we accept the its autonomy, it is RBI’s responsibility to support the vision of the government. We haven’t destroyed it (RBI as an institution) in any way. —Nitin Gadkari,  Union Minister

on the table...

• Health of MSMEs
• Board’s role in RBI decision making 
• Prompt Corrective Action framework