Govt proposes change in rules for closer oversight of RBI, empowering board

The central bank's board is scheduled to meet on Monday

The Indian government has proposed changing rules that will enable closer supervision of the central bank Reserve Bank of India (RBI), people with knowledge of the matter said.

Prime Minister Narendra Modi’s administration has recommended that the board of the Reserve Bank of India draft regulations to enable setting up of panels to oversee functions including financial stability, monetary policy transmission and foreign exchange management, the people said, asking not to be identified as the discussions are private.

The move is meant to empower the regulator’s