Expert committee to look into issues concerning capital surplus: RBI

It was also decided that the Board for Financial Supervision (BFS) of the RBI would examine the issues concerning the banks that are under the Prompt Corrective Action framework.

The RBI board Monday decided to set up a high-powered committee to examine issues related to surplus capital of ₹9.69 lakh crore with the central bank and advised it to consider a scheme for restructuring stressed assets in the MSME sector.

A man walks past near the Reserve Bank of India headquarters, in Mumbai on November 19. (PTI Photo)

At a nine-hour long meeting of the board, it was also decided that the Board for Financial Supervision (BFS) of the RBI would examine the issues concerning the banks that are under the Prompt Corrective Action framework, according to a release.

“The Board decided to constitute an expert committee to examine the Economic Capital Framework, the membership and terms of reference of which will be jointly determined by the Government of India and the RBI,” the central bank said.

Further, the apex bank has been advised to consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to ₹25 crore, subject to such conditions as are necessary for ensuring financial stability, it added.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)