Mumbai: The RBI on Monday release the minutes of its central board meeting held on 11th October to the public, as a part of its vision to lift the veil of secrecy shrouding its operations. It has been for the first time that the RBI has disclosed the proceedings of its central board to the general public, the key portions nevertheless remains redacted.
According to the revelations of the 589th meeting, the central board emphasized on the state of the financial sector along with the supervision of entities, both non-banks and banks. The regulator so far only shared the minutes of the board meeting in response to the queries sent under the Right to Information (RTI) Act.
As an revert to the queries from certain directors the framework of supervision of banks as well as other financial entities regulated and supervised by RBI were well elaborated at the meeting. According to the document the central board also discussed about the specific case of the failed Punjab and Maharashtra Co-operative Bank Ltd (PMC Bank).
In the past couple of months,the regulator has been trying to strengthen the oversight of cooperative banks post last year’s PMC crisis. The Central Bank on 5th December had announced a slew of measures in regards with urban Cooperative banks (UCBs) including cybersecurity norms, exposure norms as well as a credit repository norm. The Central Repository of Information of Large Credits (CRILC) database is utilised by the banks and other financial organizations to share with RBI and among themselves the classification status of borrowers. The RBI has reportedly also restricted urban cooperative banks from proposing large corporate loans via several changes to lending norms month. The regulator reportedly slashed single and connected borrower exposure for UCBs, specified a portfolio mix for about half of their loan books and hiked the priority sector lending target.
The Central Bank also assured that the minutes of board meetings will be available on RBI’s website within two weeks from the date of its confirmation in the next meeting of the Central board and after being signed by the Chairman.
The minutes which got released on Monday have been edited in about four places. First, item number 9 of the minutes have been thoroughly edited including its reference in the annexures.
Notably in reference to the talks on the financial sector, certain decisions seem to have been edited. The fourth black-out too occurs in the annexures.