INSUBCONTINENT EXCLUSIVE:
reviewing lending curbs on some banks, the Economic Times reported on Monday, in a move that could see the regulator bow to government
pressure.The RBI has barred 11 state-run banks from lending under the so-called prompt corrective action plan until they improve their
capital ratios, reduce bad debt and become profitable.But the central bank and the government have been at loggerheads in recent weeks with
the latter ramping up pressure on the regulator to relax lending curbs and hand over surplus reserves.The rift widened after RBI Deputy
Governor Viral Acharya in a speech on October 26 warned that undermining central bank independence could be "potentially catastrophic".The
package the Reserve Bank of India has agreed to explore, after analysing data from lending banks, could include some relaxation in the
classification of non-performing assets, as well as providing loans to borrowers hit by the note ban and tax overhaul, the Economic Times'
report said.Businesses in the country have been hit by a chaotic rollout of a goods and service tax (GST) last year and a shock move to ban
high value currency notes in late 2016 that have in turn hampered economic growth.The RBI would also consider reviewing lending restrictions
on banks which had reported an improvement in their financials as of September 30, the Economic Times said, citing a person familiar with
the discussions.The RBI and the finance ministry did not respond to requests for comment.Although the government has said it respects the
autonomy of the central bank, sources told news agency Reuters last week the government will turn up the heat at the RBI's central board of
directors meeting on November 19.
