Amid tiff with Govt, RBI to hold crucial board meeting today; liquidity crisis likely to be taken up | 10 Points

Amid tiff with Centre, Reserve Bank of India (RBI) is set to hold a crucial board meeting today where liquidity crisis is likely to be taken up. The Finance Ministry nominees and some independent directors are expected to take on RBI governor Urjit Patel and his team over issues ranging from MSME credit to the central bank's reserves. The meeting comes amid the growing tensions between the Centre and the RBI after the Finance Ministry recently sought discussions under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI governor. Even though both sides are in favour of reaching a common ground, there have been demands from some quarters for Patel to step down. However, Patel is unlikely to yield under pressure and will rather mount a strong defence of the central bank's policies regarding stringent NPA recognition norms as well as measures taken to ease credit supply to MSMEs. 

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