Saturday, November 10, 2018

Govt clarifies on seeking RBI surplus, heres what it said

Amid the hue and cry over the government asking for surplus reserves from the Reserve Bank of India, the government has clarified that there is no such proposal.

Subhash Chandra Garg, economic affairs secretary in the finance ministry, tweeted today on the issue as media reports to this effect had been appearing.

There were reports that the government is pressing the RBI for Rs. 1 lakh crore and Rs. 3.6 lakh crore from the central bank’s reserves.

But Garg said that government’s fiscal situation is quite healthy.

Garg added that the only proposal concerning the reserves that the government was discussing was to fix the appropriate economic capital framework of the RBI.

That framework is used to decide the adequate amount of reserves the central bank should maintain.

The government and the RBI have been clashing on several issues including the reserves question and a government proposal to ease the capital and lending curbs for state-run banks.</>

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