Mumbai, Dec 12 (UNI) Reserve Bank of India Governor Shaktikanta Das has convened a meeting of the Managing Directors and Chief Executive Officers of public sector banks on Thursday to discuss issues facing the banking sector.
"As one of my first acts as governor, I have convened a meeting with MDs and CEOs of public sector banks tomorrow morning to discuss the issues pertaining to the banking sector," Das said in his first interaction with the media after assuming office earlier in the day.
Das said he will follow-up meeting with heads of private sector banks.
The key issues facing the sector are the liquidity crunch in non-banking financial companies (NBFCs), norms for the Prompt Corrective Action (PCA) framework, which restricts troubled banks from lending.
According to RBI's February 12 circular, banks are given a strict 180-day timeline to agree on a resolution plan for stressed assets, failing which they have to initiate the insolvency resolution process under the Insolvency and Bankruptcy Code.
Power companies, corporate honchos and some officials are opposed to this policy,.
The new central bank head said he planned to talk to all stakeholders, including the government, on all economic issues, but added that maintaining the autonomy of the central bank was important.
"I would believe that the autonomy of the RBI is very important and that it will stay intact."
He termed three issues as important -- inflation, bank lending and liquidity -- and said that while the central bank had continued to manage these well so far, the focus would remain on them.
"Inflation targetting is an important function for the RBI, so it will remain very important," sais Das.
Asked about the differences between the government and the central bank, he said, "I would like to believe that all issues, no matter how big, can be resolved through discussions."
"I would believe that the autonomy of the RBI is very important and that it will stay intact," said Das.
He also said the RBI's central board meeting would be held as planned on December 14.
UNI SRJ