RBI to review ECF of 2016
RBI should consider
Restructuring of
MSME borrowers
The autonomy for
the Central Bank, within the framework of the Reserve Bank of India (RBI) Act,
is an essential and accepted governance requirement.
The autonomy for
the Central Bank, within the framework of the RBI Act, is an essential and
accepted governance requirement. Governments in India have nurtured and
respected this. Both the Government and the Central Bank, in their functioning,
have to be guided by public interest and the requirements of the Indian
economy.
For the purpose,
extensive consultation son several issues take place between the Government and
the RBI from time to time. This is equally true of all other regulators.
Government of India has never made public the subject matter of those
consultations. Only the final decisions taken are communicated. The Government,
through these consultations, places its assessment on issues and suggests
possible solutions. The Government will continue to do so.
The Government asked RBI for a review of its Economic Capital Framework
(ECF) adopted in 2016. As per press release by RBI on 19.11.2018, the Board has
decided to constitute an Expert Committee to examine the ECF, the membership
and terms of reference of which will be jointly determinedly the Government and
RBI and that RBI should consider a scheme for restructuring of stressed
standard assets of MSME borrowers with aggregate credit facilities of up to Rs.
25 crore, subject to conditions for ensuring financial stability.
This was stated by Shri
Shiv Pratap Shukla, Minister of State for Finance in a written reply to a
question in Lok Sabha.
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