RBI board meeting over; no decision on liquidity, PCA norms review: Report
The board considered liquidity issues with NBFCs extensively and will review the position again in its next meeting in January
The new RBI Governor Shaktikanta Das got acquented with various issues during the meeting.
New Delhi: The crucial meeting of the central board of Reserve Bank of India on Friday has come to an end but no significant decisions were taken on easing of liquidity situation for NBFCs and review of PCA norms, ET Now reported citing sources.
The RBI board was appraised of half yearly results of banks under the PCA and it took extensive feedback on liquidity situation at NBFCs, sources told ET Now. Worth mentioning here that out of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak banks. These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.
The board considered liquidity issues with NBFCs extensively and will review the position again in its next meeting in January. The date for the next meeting in January will be fixed according to Union Budget, ET Now said.
The board also considered if a capital infusion is required for banks coming under PCA and the provisioning required in the December and March quarter of this fiscal.
The Board for Financial Supervision (BSF) panel will give more details on PCA norm review in the next RBI board meeting, sources told ET Now.
The central bank is likely to come up with a statement mentioning the board meeting outcome soon.
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