Govt may ask RBI to ease PCA norms, move to free up Rs 650 bn for PSBs

Govt to pitch for alignment of PCA provisions with globally accepted Basel norms

The Union government may take up the issue of relaxing minimum capital requirement norms for lenders in a bid to free up additional money and provide liquidity to the banking system in the board meeting of the Reserve Bank of India (RBI) slated for Tuesday, sources said.  

Economic Affairs Secretary Subhash Chandra Garg and Financial Services Secretary Rajiv Kumar are the government's representatives on the board of the RBI.

During an annual review meeting held last month, Finance Minister Arun Jaitley had said that the demands of the public sector banks (PSBs) to ease prompt corrective action (PCA) framework