Friday, July 10, 2020
Home Economy and Finance Finance Minister Arun Jaitley puts to rest reports of Government seeking reserves from RBI

Finance Minister Arun Jaitley puts to rest reports of Government seeking reserves from RBI

The issue of  'overcapitalisation' of RBI has been a point of discussion among economists.

Also Read

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

After the board meeting of 19 November between RBI and Government to settle differences, Finance Minister Arun Jaitley has put to rest reports of government seeking RBI reserves, which it deemed are in excess.

In an interview with Times Now, Arun Jaitley said that India does not need money from the RBI in the next six months. Recently, the government was accused by the opposition of assaulting RBI’s autonomy, after RBI’s deputy governor Viral Acharya openly attacked the government over the issue. This was followed by many points of contention coming to fore, which created a stint of friction between two.

The reports and allegations made by Viral Acharya were rubbished by Secretary of Economic Affairs, Subhash Garg, adding that demand is only about constituting of Economic Capital Framework (ECF) to ascertain excess and needed reserves.

This demand of ECG was conceded by RBI in the board meeting on 19 November along with various other demands.

“We respect the autonomy (of the RBI) but, at the same time, if some sectors are starved of liquidity or credit, we will flag those issues. We do so with the RBI.”  Arun Jaitley added to his comments on RBI.

The issue of  ‘overcapitalisation’ of RBI has been a point of discussion among economists. In last year’s economic survey, Chief Economic Advisor Arvind Subramaniam cast doubt on the need of RBI to be that much capitalised. He said, RBI is one the most capitalised banks in the world, and it will be no harm to the institution to transfer its excess reserves to the government, to curb fiscal deficit.

The board meeting of 19 November, was seen as a ceasefire between Government and RBI. The government managed to successfully negotiate and made RBI agree to points, earlier on which RBI was reluctant. The issues included, restructuring of stressed assets for MSMEs easing of Prompt Corrective Action and easing of Basel norms.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Trending now

The Wire issues half-hearted correction after being called out by NCPCR for their blatantly fake news about ‘eight-fold increase in complaints post lockdown

The Wire retracted it after the author of the article said that she had no evidence to support her stunning claim.

The Wire accused Yogi Adityanath of being ‘casteist’ for not killing Vikas Dubey hours before the encounter of the gangster

Notorious gangster, Vikas Dubey, who was arrested from Ujjain, Madhya Pradesh was killed in an encounter in the wee hours of the morning on Friday

Vikas Dubey killed in an encounter after he attempts to flee from police custody: Here is what happened

The encounter broke out between Vikas Dubey and the Uttar Pradesh Special Task Force (STF) after the gangster tried to flee upon reaching Kanpur.

Delhi Riots Chargesheets: Before murdering Ratan Lal, the Islamist mob had held 2 other police constables hostage

The chargesheet filed by Special Investigation Team of Delhi Police in the murder of Ratan Lal and deadly attacks by rioters on IPS Amit Sharma and IPS Anuj Kumar mentions at least 17 accused.

The curious case of ‘Drone Boy’ who has made 600 drones using broken mixer grinders and televisions. A fact-check

While 'drone boy' Prathap NM has claimed to have made 600 drones using e-waste, not a single photo or video of them exist

Criminal Vikas Dubey had tortured his school headmaster to death, exhibited criminal behaviour since childhood: Report

Vikas Dubey had tortured his school headmaster Siddheshwar Pandey to death during his childhood

Recently Popular

Netizens ask Netflix to cancel comedian Kenny Sebastian’s special show after he hurls obscene abuses

Social media users are demanding that Netflix reconsiders special show of Indian comic Kenny Sebastian after he was allegedly found hurling obscene abuses to people on his Instagram page.

The curious case of ‘Drone Boy’ who has made 600 drones using broken mixer grinders and televisions. A fact-check

While 'drone boy' Prathap NM has claimed to have made 600 drones using e-waste, not a single photo or video of them exist

Jyoti Basu is the mass murderer India forgot

Please don’t feel bad about speaking ill of the Late Jyoti Basu. If there is another world, be certain that there are (at least) 28,000 voices from the other side backing you up.

Only Muslims go to heaven, Ravish Kumar-like non-Muslims can only hope for a mild level of hell: Dr Zakir Naik explains

Naik said that virtues like honesty and charity cannot ensure qualifying marks for heaven or Jannah. Only Muslims can go to heaven and non-Muslims will go to hell by default, he says.

After obscene comments, clip of comedian Kenneth Sebastian calling Sanskrit ‘most useless language ever’ goes viral. Watch video

In the video titled "Journey to the centre of my brain", Sebastian is seen thanking God because 'all the people who spoke Sanskrit are dead'.

From Vikas Dubey has reached Nepal to he may be encountered ‘because he knows dirty secrets’: Read how conspiracy theorists spun yarns

As Vikas Dubey was on the run, the journalists kept themselves busy conjuring up various conspiracy theories.

The Wire issues half-hearted correction after being called out by NCPCR for their blatantly fake news about ‘eight-fold increase in complaints post lockdown

The Wire retracted it after the author of the article said that she had no evidence to support her stunning claim.

1 lakh km of road built with plastic waste, Modi govt saves Rs 30,000 per km: Read about the revolution in road construction

In 2016, Union minister Nitin Gadkari had announced the usage of plastic waste in road construction

Hours before Vikas Dubey was killed in encounter, a petition was filed in Supreme Court seeking protection for the gangster

Before Vikas Dubey’s encounter, one Mumbai-based petitioner had filed petition in SC to prevent UP police from encountering him

Police recover seven crude bombs from properties connected to Vikash Dubey, some from house taken care of by the gangster’s driver

Vikas Dubey, who was arrested yesterday from Ujjain, was killed in an encounter in Kanpur on early morning on Friday

Police personnel injured in Vikas Dubey encounter did suffer bullet injuries: Here is what the doctor said

The doctor who treated policemen injured during the Vikas Dubey encounter confirm that they were hit by bullets

Congress leader Udit Raj’s organisation makes derogatory comments against Brahmins, compares the community to ‘pigs’

Dalit organsation All India Parisangh run by Congress leader Udit Raj insults Brahmins by comparing with pigs

Nepal: Lawmaker removed from House of Representatives for pro-India stand, had blamed China for the new map

Sarita Giri of the Samajwadi Party Nepal has been removed from her position of a member of the House of Representatives.

Nizamuddin Markaz: Delhi Court sets 60 Tablighi Jamaat members from Malaysia free for a ₹7000 fine

60 Malaysian nationals who had attended Nizamuddin Markaz violating visa norms freed by Delhi court on fine of Rs 7000 each

Four policemen injured in the accident, which led to the encounter of Vikas Dubey, brought to the hospital: Watch

The injured policemen have been rushed to Lala Lajpat Rai Hospital in Kanpur, after they suffered some injuries during the encounter of gangster Vikas Dubey.

After notorious gangster Vikas Dubey, another criminal Panna Yadav killed in an encounter after he opened fire

After Vikas Dubey, notorious criminal Panna Yadav gunned down in encounter by Uttar Pradesh police

Connect with us

235,314FansLike
402,568FollowersFollow
272,000SubscribersSubscribe