Govt not seeking Rs 3.6 lakh crore from RBI: DEA Secy

P Chidambaram during his press meet at West Bengal Pradesh Congress office at Bidhan Bhawan in Kolkata on Thursday

The government wants some of these strictures to be eased so that banks can kick start lending and support economic growth ahead of a general election early next year.

He added that it would be hard to quantify a percentage amount for how much of RBI's profits should be transferred to its reserves. The disagreements came out in open when RBI deputy governor Viral Acharya, in a hard-hitting speech, said failure to defend the central bank's independence would "incur the wrath of the financial markets". The global norm sets 14% of the GDP to be kept in reserve by the central bank. "A thorny ongoing issue on this front has been that of the rules for surplus transfer from the RBI to the government". The issue being discussed was for an appropriate economic capital framework.

"If the RBI either defies the government or the RBI governor resigns, in either events, the effect will be catastrophic", he said.

Chidambaram alleged that the government had packed the central bank's board with handpicked nominees and was making every attempt to push through its proposals at the RBI board meeting on 19 November.

With the government and the Reserve Bank of India being at loggerheads over issues such as allocation of the central bank's capital, former RBI board member YH Malegam said there is no provision in the RBI Act that says the central bank's reserves can be paid to the government. There is no proposal to ask the RBI to transfer Rs 3.6 or 1 lakh crore (trillion), as speculated.

More news: Russian Federation brings together Afghan officials, Taliban in talks

Through a series of posts, Garg said, "A lot of misinformed speculation is going around in the media".

The economic affairs secretary was confident about the government's ability to meet the fiscal deficit target for the current fiscal year and reiterated the government stand that it will adhere to fiscal prudence.

There have been reports that the Centre has already thrice asked the RBI to transfer Rs 3.6 lakh crore from its reserves. This proposal sought transfer of surplus of Rs 3.6 lakh crore, that amounts to approximately one-third of the RBI's reserves.

A senior finance ministry official confirmed that the idea originated during the UPA tenure and also the need to fix how much surplus reserve RBI should keep and how much it should transfer to the government.

Related News:



Most liked

All Blacks v England - all you need to know
That, to us, wasn't successful. "That's given this week a sharper edge, which is good", Hansen told a news conference. Many in the north prefer to only remember the final 1-1-1 result.

Adriana Lima walking away from Victoria's Secret
For another round on the catwalk, she donned a tiny plaid kilt skirt with a mismatched plaid train and bra as she smiled. Could Adriana Lima be about to hang up her Angel wings? Touching tribute: " Dear Victoria " she said in the caption.

Trump erroneously accuses French President Emmanuel Macron of ‘very insulting’ comments
But in a tweet prior to landing in Paris, Trump took a dim view of comments Macron made in a Europe 1 radio interview this week. "We have to protect ourselves with respect to China, Russia and even the United States of America", Macron said .

Surgeons in Australia separating conjoined girls from Bhutan
He said the operation was expected to last around six hours and would involve 18 medical staff divided into two teams, one for each girl.

Man breaks into crocodile enclosure, gets bitten
Officers say he was seen climbing into the Nile Crocodile enclosure and then jumping into the pool with the reptiles. Police said the man was bitten by a crocodile and sustained non-life-threatening injuries to his feet and leg.

Diwali fireworks push air pollution to ‘severe’ level in India’s capital
Meteorology, as well as stubble burning , makes a huge difference in Delhi's air quality in late October and November. On 6 November, a day before Diwali, Delhi's air quality was 418 which is "hazardous" at 11am.

Ryanair plane seized by French authorities in cash row
Ryanair's fleet is made up mostly of Boeing 737-800 aircraft, which have a list price of more than $90 million each. A Ryanair plane was seized on the tarmac at a French airport in a row over an unpaid bill, it has emerged.

Painted 40,000 years ago, world's earliest cave paintings discovered in Borneo
In the cave have been preserved and thousands of drawings later, created about 20 thousand years ago, which depict human figures. Rock art was made for a objective and we can see how people lived a long time ago in a way that archaeology can't provide.

President Donald Trump says Democrats have 'nothing, zero' on him
There was a revolt in the suburbs Tuesday against the GOP, and the political upheaval now threatens what's left of Trump's agenda. A new generation of Democratic representatives, propelled by resurgent activism, is heading to the halls of Congress.

‘Planetary torch’: Earth’s laser tech could be used to lure alien communications
He says the lasers needed for the project have already been invented, but they still need a large enough telescope. Either setup, he estimated, could produce a generally detectable signal from up to 20,000 light-years away.

Victory aside, Pelosi's return as House speaker not a given
Neal has not publicly clashed with Trump, but as chairman would likely try to roll back some of the president's tax cuts. Voters then remembered the Depression and World War II and rewarded incumbents in time of peace and prosperity.

US Retailers already kicking off Black Friday with big deals
If you want to skip the hassle of the store, the sales will also be available online starting Wednesday, Nov. 21 at 9 p.m. Some estimates suggest spending could reach $1 trillion for the first time.

Is interstellar object ‘Oumuamua an alien space probe?
Their theory of the " exotic " by their own admission, is based on the speed of Oumuamua , more important than expected for a vehicle of this shape.

Did your Windows 10 just deactivate? Microsoft confirms Windows 10 Activation issue
The cause for this is being attributed to the failure of Microsoft's Activation Servers to validate the Windows 10 licenses. Maybe it broke Windows file associations for you, so you can't open files in the default programs you choose.

Meg Ryan confirms she’s engaged to longtime boyfriend John Mellencamp
It's been rumored for months that a secret wedding was in the works for the private couple, something neither star commented on. There was a rumor earlier this year that Meg and John had tied the knot, but Ryan's rep told EOnline.com it wasn't true.