INSUBCONTINENT EXCLUSIVE:
to be a stormy affair in the backdrop of the ongoing tussle between the government and the central bank, sources said, adding that some
members are likely to raise issues concerning capital framework, management of surplus and liquidity measures for MSMEs
Tensions between the RBI and the government have recently escalated, with the Finance Ministry initiating discussion under the
never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor.RBI Deputy Governor Viral
Acharya had in a speech last month talked about the independence of the central bank, arguing that any compromise could be "potentially
directors could raise the issue of interim dividend along with the capital framework of RBI
RBI is following conservative capital adequacy norms which are stricter than those in advanced economies, leading to banks keeping more risk
requirements are high for domestic lenders because of higher defaults/bad loans, Vishwanathan explained, and warned that lowering capital
government last Friday said it was discussing an "appropriate" size of capital reserves that the central bank must maintain as it denied
had said that the government was not in any dire needs of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore
The government, he said, is on track to meet the fiscal deficit target of 3.3 per cent of GDP for the financial year 2018-19
"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he had tweeted."Government's FD (fiscal deficit)
From 2014-15 onwards, Government has succeeded in bringing it down substantially
We will end the FY 2018-19 with FD of 3.3%
Government has actually foregone (Rs) 70,000 crore of budgeted market borrowing this year." Garg further said the only proposal "under
transfer of surplus reserves to the exchequer
Former Chief Economic Adviser Arvind Subramanian had in the Economic Survey 2016-17 said the RBI was already exceptionally highly
capitalised and nearly Rs 4 lakh crore of its capital transfer to the government can be used for recapitalising the banks and/or
Meanwhile, Former Union finance minister P Chidambaram on Sunday asked the Centre what was its "tearing hurry" to "fix" the capital
framework of the RBI when the ruling dispensation had just four months to complete its term
"The NDA government has competed 4 years and 6 months of its term
It has effectively 4 months left
What is the tearing hurry to 'fix' the capital framework of RBI" he tweeted.
