NEW DELHI: The Reserve Bank of India (RBI) concluded a critical day-long board meeting, said a source familiar with the situation. It wasn't immediately clear whether it had come to any conclusions in a dispute with the government over easing liquidity for the financial sector and increasing credit to small businesses.
The central bank will take measure to improve liquidity, according to sources.
The government has been pressing the RBI to reduce capital ratios for banks, which would speed up loans to small businesses in remote parts of the country, a crucial vote bank for Prime Minister Narendra Modi. There are five key state elections in the next few weeks and a general election due by May.