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Govt versus RBI: Pressure on RBI to ease credit to small firms, relax lending norms

Govt versus RBI: Pressure on RBI to ease credit to small firms, relax lending norms

Monday, October 29, 2018, 8:43 AM

While the trouble between the government and RBI has been simmering for a while, RBI Deputy Governor Viral Acharya's public outburst followed a persistent demand by some recently-appointed non-official directors to the central bank's board for MSME (Micro, Small and Medium Enterprises) forbearance and relaxation of the RBI's prompt corrective action (PCA) framework for some banks to ensure better credit flow to stressed sectors.
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