The RBI Board decides to set up an expert committee to examine the Economic Capital Framework; the central bank says the issue of banks under PCA will be examined by its Board for Financial Supervision.

The RBI board may have reached on a conclusion over the issues of liquidity and easing out PCA norms.

PNB Housing Finance was trading 0.89% lower, Indiabulls Housing Finance dipped 2.32%, Dewan Housing Finance rose 2.86%, Mahindra & Mahindra Financial Services fell by 0.74 per cent, Ujjivan Financial Services declined 0.22 per cent and Shriram Transport Finance softened by 0.85% on the BSE.

Taking to Twitter, Rahul Gandhi accused Modi and his \"coterie of cronies\" of destroying institutions.

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.

Given concerns that NBFCs have frozen lending amid fears of a liquidity crunch, the government is determined to break the logjam that's causing a credit squeeze for micro, small and medium enterprises (MSMEs), which employ millions

This training has been provided to officers working at nearly 3,000 bank branches covering all districts in India through more than 2,000 special workshops in the last three years

Patel is unlikely to yield under pressure and will rather mount a strong defence of the central bank's policies regarding stringent NPA recognition norms as well as measures taken to ease credit supply to MSMEs.

Clearly, the battle lines between the RBI and the government are drawn. The pressure is on the RBI to soften its so called rigid stance to find a way out.

On November 2, RBI had allowed banks to provide PCE for debt raised by non-deposit-taking systematically important non-banking financial companies and housing finance companies

The RBI recently allowed banks to give partial credit support to NBFC bonds.