The board of Reserve Bank of India (RBI) discussed issues such as the prevailing liquidity situation and flow of credit from banks and non-banking finance companies to the economy at its meeting held on October 21, the minutes showed.
This is the first time the RBI has released the minutes of a board meeting in public domain in a bid to enhance transparency regarding its functioning. The minutes were available under the Right to Information Act.
“In future, the minutes will be placed on the RBI’s website within two weeks from the date of its confirmation at the next meeting of the Central Board and on being signed by the chairman in the same meeting,” the RBI said in a statement.
During the October meeting, the board discussed issues relating to financial markets, impact of the monsoons on the agricultural sector and prices, agricultural infrastructure as also the external sector.
The minutes said, “the specific case of PMC Bank [Punjab and Maharashtra Cooperative Bank] was also discussed.”
The central board does not discuss interest rates, which are set by the monetary policy committee. It’s objective is to provide a broader guidance to the central bank.
The minutes showed that one of the directors presented his perspective on industries like automobiles, real estate, steel, power and road transport.
“He was of the view that a concerted effort on the part of the government as well as various regulators is needed to improve the situation,” the minutes said.
The board also deliberated on the executive director’s memorandum on revision of sitting fees of the directors of the central board and the members of the local board. It was decided that the present fee structure should continue.
