The Reserve Bank of India's (RBI) central board on Monday, during a marathon meeting that lasted nearly nine-hours, 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).
The RBI, in a statement, said that it has 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 the central bank.
The RBI's central board currently has 18 members, though the provision is that it can go up to 21.
Amid growing tensions with the central bank, the Finance Ministry had sought discussions under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor.
RBI Deputy Governor Viral Acharya had in a speech last month talked about the independence of the central bank, arguing that any compromise could be "potentially catastrophic" for the economy.
In his first public comments since the spat between the RBI and the Finance Ministry came out in the open, Swadeshi ideologue S Gurumurthy had last week said the stand-off "is not a happy thing at all".
With agency inputs