Reserve Bank board discusses commercial, co-operative banks, NBFCs

The meeting assumes importance after the Punjab and Maharashtra Cooperative Bank scam and the general liquidity deficit in the NBFC sector

The Reserve Bank of India’s (RBI’s) central board met on Friday in Chandigarh and discussed the current state of the financial sector, with special focus on the regulatory and supervisory architecture of commercial, co-operative banks and non-banking financial companies. 

The meeting assumes importance after the Punjab and Maharashtra Cooperative (PMC) Bank scam and the general liquidity deficit in the NBFC sector. However, the banking system continues to be flushed in liquidity. Finance Minister Nirmala Sitharaman said on Thursday that the a committee would examine how to modify regulations for cooperative banks so that PMC- like incidents don't take place. 

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