Amid ongoing rift, RBI’s board meeting likely to reach common ground on key issues on Monday

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The ongoing rift with the government is set to play out at the RBI’s crucial board meeting on Monday, with the Finance Ministry nominees and some independent directors expected to take on Governor Urjit Patel and his team over issues ranging from MSME credit to the central bank’s reserves, though both sides are in favour of reaching a common ground.

While there have been reports and demands from some quarters for the Governor to step down, sources said Patel is unlikely to yield under pressure and will rather mount a strong defence of the central bank’s policies regarding stringent NPA recognition norms as well as measures taken to ease credit supply to MSMEs.

Patel and his four deputies, who all are members of the RBI’s 18-member central board, will present a united front, while a few independent directors too are expected to support the central bank’s mission to clean up bank balance sheets, sources said.

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