The government announced the Rs 2.11-lakh crore capital infusion programme in October last year. According to the plan, the PSBs were to get Rs 1.35 lakh crore through recapitalisation bonds, and the balance Rs 58,000 crore through the raising of capital from the market.

The board took a slew of steps including a restructuring scheme for MSME borrowers with credit facilities of up to Rs 25 crore.

While the BSE bankex ended 231.40 points or 0.78% lower at 29,372 level, bank Nifty fell 187 points to 26,113 points. 

Under the current structure, RBI's nominees can reportedly take decision on their own, without keeping key stakeholders in the loop. So, the government is expected to ask the RBI to at least seek comments, if not approval, on issues that can impact the overall economy.

Reddy, whose whereabouts were not known since Wednesday till he appeared at the Central Crime Branch police office on Saturday, was arrested after the intense questioning ended Sunday morning.