The Reserve Bank of India signaled a compromise with the government by agreeing to study a demand for sharing a part of its capital -- an issue that had triggered a public spat between the monetary policy makers and their political bosses.
The central bank will form a panel to consider the funds transfer to the government, it said in a statement after the board meeting that lasted a little over nine hours. It, however, did not immediately yield to demands for easing lending norms for weak banks while retaining capital buffers for banks at 9 percent.
"Both the RBI governor and the finance ministry walked the extra mile," Sachin Chaturvedi, a member of the board, said in an interview to Bloomberg. "They were flexible on several issues."