November 14, 2018 / 12:27 PM / in a month

India wants RBI to address credit, liquidity issues as priority: TV channels

A woman walks past the Reserve Bank of India (RBI) head office in Mumbai, December 6, 2017. REUTERS/Shailesh Andrade/Files

NEW DELHI (Reuters) - India’s finance ministry wants the Reserve Bank of India (RBI) to address credit and liquidity related issues at its board meeting scheduled for Nov. 19, Indian TV channels reported on Wednesday, citing unidentified sources.

The central bank and the government have been at loggerheads in recent weeks as the government ramps up pressure on the regulator to relax lending curbs and hand over surplus reserves.

According to the TV reports, the sources said the discussions on the economic capital framework of the central bank, a reference to the reserves issue, can continue later. Kicking that issue down the road could allow space for the two sides to come to an uneasy truce next week.

Economic Affairs Secretary Subhash Chandra Garg last week said the government was discussing ways to fix the appropriate economic capital framework of the RBI. That framework is used to decide the adequate amount of reserves the central bank should maintain.

Reporting by Nidhi Verma; Editing by Martin Howell

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