Truce between government, RBI after seniors step in to resolve issues

The Reserve Bank of India and the government are expected to resolve at least two issues at the central bank's board meeting: prompt corrective action (PCA) and a special refinance window for non-bank

The Union government and the Reserve Bank of India (RBI) appear to have reached a truce on a number of issues ahead of the much-anticipated meeting of the central bank’s board of directors on Monday. This softening of stand by senior figures on both sides of this prolonged dispute is expected to lead to concrete resolution on at least two issues — prompt corrective action (PCA) and a special refinance window for non-banking financial companies (NBFCs).

On Friday evening, there were reports that the Centre was proposing changing rules that would enable closer supervision of the central bank. It