The central board of Reserve Bank of India discussed in detail the regulatory and supervisory framework of co-operative and commercial banks during its meeting on Friday. Chaired by RBI Governor Shaktikanta Das, the central board's deliberations come in the backdrop of the Rs 4,355-crore scam at the Punjab and Maharashtra Co-operative (PMC) Bank.
"The Board also discussed in detail the current state of the financial sector with special focus on the regulatory and supervisory architecture of commercial and co-operative banks as also NBFCs," the central bank said in a statement.
A day before, Finance Minister Nirmala Sitharaman had formed a panel to suggest legislative changes to ensure better governance at co-operative banks and provide more power to the regulator. The minister had assured PMC Bank depositors that the government is taking necessary steps in the matter.
Former senior officials of the PMC Bank are presently being interrogated by the Mumbai Police over charges of underreporting loans extended to the embattled realtor Housing Development and Infrastructure Ltd (HDIL). Rakesh Wadhwan and Sarang Wadhwan, the promoters of HDIL, are also in police custody.
In the meeting today, the central bank reviewed the current economic situation, global and domestic challenges and various areas of its operation. The board also discussed the role of payment banks and small finance banks in promoting financial inclusion.
The RBI central board also reviewed annual activity reports of local boards, the various sub-committees of the board and functioning of a few central office departments. It also formed a strategy sub-committee of the Central Board of Directors.