However, all information called for is only for the Reserve Bank's internal consumption as the central bank does not want to highlight the US-64 issue at a time when it is facing a large-scale crisis of confidence. For the same reason, governor Bimal Jalan has not had any formal meeting with UTI chairman PS Subramanyam, sources said. On the face of it, RBI wants to maintain the status quo for the time being.

The issues were discussed threadbare by Jalan on Friday on his return from the IMF-World Bank meet. The high-level meeting was attended by the entire RBI top brass including executive director S Gurumurthy--who has been on the UTI board as the RBI nominee --officials of the department of banking operations and development (DBOD) and the legal cell.

At the meeting, RBI officials felt that it is not possible for it to force a change in the portfolio of the US-64 unless the Unit Trust of India ceases to remain a mutual fund and change itself into a financial institution through an amendment.

"We are not responsible for the UTI and we cannot inspect the books of the Trust as under the UTI (Amendment) Act 1976, the Industrial Development Bank of India is responsible fully for US-64. We can inspect the US-64 scheme only if the UTI Act is changed and is transformed into a financial institution. We can inspect IDBI and guide its functions but not UTI even though we are the original promoter," a source who attended the meeting on Friday said.

Section 30 of the UTI Act says: "In discharge of its functions under this Act, the Trust shall be guided by such directions in matters of policy involving public interest as the IDBI may give to it in writing and if anyquestion arises whether the direction relates to a matter of policy involving public interest, the decision of the IDBI thereon shall be final."

This effectively means that any restructuring of the US-64 rests completely on the IDBI and the RBI will have nothing to do with this unless the UTI gets converted into a financial institution.

The Reserve Bank can, however, pump in money to bail out the mutual fund major in hours of crisis as Section 20A of the Act says: "The Reserve Bank or the development bank may from time to time in its discretion pay to the Trust from out of the amount under sub-section (1) of Section 25A any sum to be utilised by the Trust solely for meeting the losses arising out of, or any additional amount required in connection with any variation made by the Trust in the sale or repurchase price of a unit."

According to sources, the central bank has all along in favour of restructuring the US-64 portfolio as it is tilted too much in favour of equity. "Ideally, the scheme shouldincrease its debt portfolio. However, this is not the time to highlight all these. Let the status quo remain for the time being till the market comes to grip with the reality," sources said.