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The Central Board of the Reserve Bank of India (RBI) today met at Chennai and reviewed the current economic situation, global and domestic challenges and policy responses.
The meeting was chaired by Raghuram G. Rajan, governor, Reserve Bank of India and was attentended by Anil Kakodkar, Kiran S. Karnik, Dr. Nachiket M. Mor, Y. H. Malegam, G M Rao, Ela R. Bhatt, Indira Rajaraman and Damodar Acharya, Directors attended the meeting. Harun R. Khan, Dr. Urjit Patel and R. Gandhi, Deputy Governors were also present.
While the Governor did not meet the Media, in a statement RBI said that the Central Board meets at least once every quarter and the meeting in July every year is traditionally held in Chennai. Apart from this, one meeting each is held in Mumbai, Kolkata and New Delhi which is typically held after the Union Budget and is addressed by the Finance Minister.
The rest of the Board meetings are held in other state capitals by rotation. The main function of the Central Board of Directors of the Reserve Bank is to provide overall direction to the Reserve Bank's affairs.
Later the Governor, met the industry and chamber representatives for a lunch. One of the officials who attended the lunch meeting said "the meeting went on well he was talking about the reform in the financial sector. The Governor did not give any comment on the Union Budget".
During his visit to Chennai, which is also his home, the RBI Governor inaugurated the Financial Gallery at the Chennai Regional Office of the Reserve Bank to spread financial awareness among the general public, more specifically students. He also launched e-Collections Portal on E-Kuber
SLBC Meeting
In the special State Level Bankers' Committee (SLBC) meeting held in the afternoon, the Governor and Deputy Governors interacted with senior officials of the state government and senior bankers
While addressing the meeting, the Governor stated that in pushing the Financial Inclusion agenda further, he would stress the five Ps: Products, Proximity (Access), Price, Protection and Profitability.
The Governor also stressed to create an environment that would be conducive for bankers to achieve the targets.
He cited two recent instances of relaxing regulations for appointing Business Correspondents (BCs) and Know Your Customer (KYC) norms for address proofs - that would make access to banking facility easier.
The Governor also reportedly mentioned that the Reserve Bank will soon put out discussion papers on payment banks and small banks.
He also said that banks should play an active role in educating the people in opening bank accounts, maintaining the value of their security, the importance of balancing the budgets, how to use loans to improve the quality of their lives and thus inculcating good financial habits in them.
The major issues discussed in the SLBC meeting included:
Appointment of Business Correspondents (BCs) by banks in urban areas for payment of Old Age Pension at the door steps, payment of commission to banks by the government for effecting the Scheme under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) payments through bank accounts on the lines commission paid on payment of Old Age Pension and formation of Joint Liability Groups (JLGS) of the beneficiaries of (MGNREGA) for sustainable financial inclusion, Expedite in opening of bank accounts for the beneficiaries to speedup disbursement of Social Security Pension through bank accounts, Notifying of all banked centres for creation of equitable mortgage by deposit of Title Deeds by borrowers by the Tamil Nadu Government under Transfer of Property Act 1882 and digitalisation of land records, enabling banks to do registration of online charge for the loans extended to farmers as it has been implemented by the Government of Karnataka under "Bhoomi Project.
The other major issues discussed was Invocation of Revenue Recovery Act 1864 for recovery of non-performing assets (NPAs) of banks in government sponsored programmes, enumeration of self-help group (SHG) members and their compulsory registration with Government to avoid multiple financing; and issuance of loan eligibility certificates to lessee farmers and tenant farmers on the lines of Andhra Pradesh Land Licensed, according to RBI release.
