Shaktikanta Das to attend the first RBI board meeting as Governor today

According to sources, one of the key agenda for the board meeting will be governance issue - the role of central board in the decision making of the RBI.

File image: PTI

New Delhi: The Reserve Bank of India (RBI) is set to have its board meeting at 10:30 am on Friday. This is the first time the newly elected governor Shaktikanta Das will attend the board meeting as a governor. As per reports, directors are likely to push for greater say in the decision making of the central bank during the board meeting. The meeting will review the progress with respect of some of the decisions taken in the last meet on November 19. Among other things, the crucial board meeting is expected to take a stock of Micro, Small & Medium Enterprises (MSMEs), which is under stress due to demonetisation and implementation of the Goods and Services Tax (GST). This scheduled meeting comes in the backdrop of surprise resignation by Urjit Patel earlier this week citing personal reasons. However, the tussle between the Finance Ministry and RBI was attributed as reason for the sudden exit of Patel, who would have completed his 3-year term in September 2019. According to sources, one of the key agenda for the board meeting will be governance issue - the role of central board in the decision making of the RBI. Given the current structure, the central board plays advisory role but there is growing clamour to make it operational and have greater participation in key decisions of the central bank. The government as one of important stakeholders also wants greater involvement in the RBI's decision making as it feels the current practice leaves it out on many critical issues like single-day default turning a loan into an NPA, sources said.