There is a board meeting underway between The Reserve Bank of India‘s all board members. The RBI’s 18 board members, which is headed by Urjit Patel, are meeting today to discuss key issues, such as easing rules for weak banks, providing cash support to non-bank finance companies (NBFC) and formulating a new RBI capital framework.

The RBI board which comprises 18 members, includes five members from the central bank, two government officials, four representatives from the regional RBI board and seven independent directors appointed by the government.

The two government representative on the RBI board are Subhash Chandra Garg, economic affairs secretary, finance ministry, and Rajiv Kumar, financial services secretary, finance ministry.

It is said that the RBI board meeting is very crucial as it may change the entire relationship between the government and the RBI. There is a lot of turbulence in policy circles as well as the domestic and international markets, as people are wondering how the unprecedented confrontation between RBI and the union government will come to an end.

As per media reports, in the crucial meeting today, the RBI board members will discuss (1) capital adequacy rules in India in accordance with Basel III norms, (2) prompt corrective action framework for weak banks, (3) liquidity crisis faced by small and medium enterprises and NBFCs, and (4) transfer of surplus by the RBI to the government.

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