RBI Board Meeting Live Updates: In Heightened Alert, Markets, Investors Wait For Outcome

The meeting of the board of the Reserve Bank of India has started amid what analysts say an atmosphere of mistrust over perceived government interference on the central bank's functioning. Though the government has maintained it has no intention of forcing the RBI's hand to do its bidding, the opposition has alleged the NDA regime intends to plough into the precious reserves of the central bank in election season. With a heightened sense of alertness, the markets and investors are also closely watching the development. Any sign that all's not well in the RBI could mean trouble for the markets, analysts say. The first sign of trouble came in October when reports alluded to the government's interest in Section 7 of the Reserve Bank of India Act or RBI Act, which empowers the centre to issue directions to the "lender of last resort" — meaning the government could take charge of policy. Last year, former RBI Governor D Subbarao said Section 7 has never been used in more than 80 years of the central bank's history.

Here are the live updates of the RBI board meeting:

Nov 19, 2018
10:21 (IST)
The meeting of the board of the Reserve Bank of India (RBI) headed by Governor Urjit Patel has started: news agency ANI
Nov 19, 2018
09:58 (IST)
The main point of friction between the RBI, led by Governor Urjit Patel, and the government is clearly the issue of how much reserves should the central bank keep locked in its safe. The people sent to the RBI board by the government want the centre to have access to surplus reserves the RBI has built up — money that could be used for the administration's populist programmes including boosts to rural wages, fuel subsidies and buying crops at a guaranteed minimum price.

In the past week there have been signs of an uneasy truce as some government officials indicated they didn't want Urjit Patel to resign and would allow some issues to be kicked down the road, Reuters reported.
Nov 19, 2018
09:55 (IST)
The first sign of trouble came in October when reports alluded to the government's interest in Section 7 of the Reserve Bank of India Act or RBI Act, which empowers the centre to issue directions to the "lender of last resort" — meaning the government could take charge of policy. Last year, former RBI Governor D Subbarao said Section 7 has never been used in more than 80 years of the central bank's history