Amid escalating differences between the Reserve Bank of India and the centre, said the government was upset with the central bank for not consulting the ministry before finalizing norms for prompt corrective action (PCA) and classification of non-performing assets (NPAs), Business Standard reported.

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“The PCA framework was revised and tightened in April 2017, but there was no discussion in any board meeting. The government does not know the rationale behind revising the framework and how the RBI arrived at it. Similarly there was no discussion in the board meeting on the revised NPA framework, a senior unnamed government official told Business Standard.

The government wants the PCA norms to be in sync with the globally accepted Basel regulations, however, the RBI feels imposing the PCA helped in “stabilising the banks at risk,” the report added.

On Friday, the RBI Deputy Governor Viral Acharya warned that undermining a central bank's independence could be "potentially catastrophic", in an indication that it is pushing back hard against government pressure to relax its policies and reduce its powers.

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