Gov Patel calls for RBI board meet on Nov 19 to talk on key issues

Last Updated: Thu, Nov 01, 2018 13:08 hrs
Urjit Patel - RBI Governor (AFP Photo)

Reports coming from media sources say that the RBI board is likely to meet on Monday, November 19. Governor Urjit Patel has called for this meeting to deliberate key issues.

What issues get discussed could be anybody's guess, however anonymous sources were quoted in media reports saying that this was a routine meeting of the central board. It is likely that the discussion could veer around the recent feud between the Reserve Bank and the Central Government.

The RBI according to media reports has 18 members on board, including those nominated by the Government. On its website, the Central bank lists twelve members of the board. The Chairperson of this board is N Chandrasekaran, who is also the Chairperson of the board at Tata & Sons.

Other members on the board include Subhash Chandra Garg (Secretary at the Department of Economic Affairs), Rajiv Kumar (Secretary, Department of Financial Services), Bharat Doshi, Sudhir Mankad, Dr Ashok Gulati, Manish Sabharwal, Dr Prasanna Kumar Mohanty, Dilip Shanghvi (Sun Pharmaceuticals), Satish Marathe, Prof Sachin Chaturvedi, and Revathy Iyer.

This is the first meeting involving the board after Viral Acharya, RBI's Deputy Governor delivered a memorial speech that lead to speculations on issues relating to autonomy of the central bank.

Reports also speculate that the meeting could be in line with discussions related to Section 7 of the RBI Act.

Since the start of the week there have been speculations suggesting that the Governor was mulling several options including the likelihood of a resignation. This, owing to a breakdown in communication with the central government.

On Tuesday, Finance Minister Arun Jaitley held the RBI responsible for rising NPAs saying banks lent freely from 2008-14. A day later, the Finance Ministry assuaged the general public by saying that it supported the autonomy of the central bank.

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