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India's central bank may lift lending restriction on 4 of 11 banks in Q4

The Reserve Bank of India said at a Dec. 14 board meeting that it may lift lending restrictions for around 4 of 11 banks under a prompt corrective action framework if there is sufficient capital injection, The Times of India reported Dec. 15.

The next meeting is set for mid-January 2019, by which time the banks should have provided an indication of provisions needed in the third and fourth quarters for the government to determine capital requirements.

The central bank's recently appointed governor Shaktikanta Das will also hold meetings with government representatives on capital reserves that the RBI needs to maintain, said the report. There have been reported tensions between the parties over issues such as banking surplus funds and relaxation of lending rules, which have raised concerns over the RBI's independence.