RBI board to meet on November 19; government nominees to press on their proposal: Report

The upcoming meeting of the board of the Reserve Bank of India (RBI) on November 19 will be no less dramatic than the previous one held in Mumbai on October 23, which was followed by a series of developments that unfolded the differences between the centre and the central bank,reported Business Standard.

The RBI board, which includes government nominees will be making a presentation as to why the regulator should consider accepting all the suggestions made by the finance ministry to Urjit Patel, RBI governor, on October 10, the report said, adding that the communication had used the provisions of consultation with the RBI governor under Section 7 of the RBI Act.

These suggestions will include the doing away with the exposure limit requirement of 20 percent of the foreign portfolio investments in corporate bond portfolios of a single corporate group, removing requirements for mandatory hedging for infrastructure loans of less than 10 years’ maturity, the report said.

The suggestion list also includes setting up of a window for non-banking finance companies (NBFCs), housing finance companies and mutual funds, creating facilities for banks to raise about $30 billion and a review of the economic capital framework for bringing it in line with the requirements of the RBI Act.