No decision yet on how to use RBI windfall: Sitharaman
5 years, 4 months ago

No decision yet on how to use RBI windfall: Sitharaman

Live Mint  

Finance minister Nirmala Sitharaman Tuesday strongly reacted to the Congress' allegation of "stealing RBI's reserves", saying she does not care about such charges and the opposition leader should have spoken to the finance ministers from his party before hurling such charges. Congress leader Rahul Gandhi earlier in the day hit out at the government over the record cash transfer from the RBI, saying the prime minister and the finance minister are "clueless" about solving the "self-created economic disaster" and accused them of "stealing money" from the central bank. Sitharaman also said questioning the credibility of the RBI, which had constituted the Bimal Jalan committee on determining the excess capital, is a "worrying" sign. "Any suggestion on the credibility of RBI seems a bit outlandish considering the committee was appointed by the RBI itself," she said, adding the government has not decided how to use the windfall from the RBI.

Congress Rbi Sitharaman  decision  stealing  minister  making  windfall  committee  finance  allegations  rbi  money  used  transfer  sitharaman

History of this topic

Opinion | An easy surrender of the country’s economic defences
5 years, 4 months ago

Opinion | An easy surrender of the country’s economic defences

Live Mint  

The global economy is admittedly in a strange place and even the usually reliable experts are struggling to decode an evolving economy and the central bank’s place in it. To address this new normal, we are conducting a public review of our monetary policy strategy, tools, and communications.” Coincidentally, the same day Lawrence Summers and Anna Stansbury published a Project …

RBI’s ₹1.76 trillion transfer to government to be balance sheet neutral
5 years, 4 months ago

RBI’s ₹1.76 trillion transfer to government to be balance sheet neutral

Live Mint  

Mumbai: The transfer of the Reserve Bank of India’s surplus to the government will not require the central bank to sell assets and won’t shrink the size of its balance sheet, a person aware of the development said. The person also said that finance secretary Rajiv Kumar, the government’s nominee on the Bimal Jalan committee, wanted RBI’s surplus, or the …

Government should use RBI funds in a prudent manner
5 years, 4 months ago

Government should use RBI funds in a prudent manner

The Hindu  

After a long tug of war, the government has eventually had its way with the Reserve Bank of India, managing to get it to part with a portion of its accumulated reserves. The RBI board, on Monday, decided to transfer a massive ₹1,76,051 crore to the government, including a sum of ₹52,637 crore from its contingency reserve built over the …

Opinion | An RBI war chest that could see off a crisis
5 years, 4 months ago

Opinion | An RBI war chest that could see off a crisis

Live Mint  

The transfer of ₹1.76 trillion by the Reserve Bank of India from its coffers to the government does several important things. For one, it settles an argument over how much money RBI needs to keep for itself; the central bank says it has gone along with the recommendations of an expert panel headed by former RBI governor Bimal Jalan. One …

Windfall from RBI to give government ammunition to fight slowdown, boost capex
5 years, 4 months ago

Windfall from RBI to give government ammunition to fight slowdown, boost capex

India TV News  

A record windfall from the RBI under Governor Shaktikanta Das to the tune of Rs 1.76 lakh crore -- higher than the aggregate dividend paid out by the central bank in previous three years -- will give the Modi government ammunition to fight an ever-widening slowdown in the economy by spurring investment and giving sectoral stimulus. Given the expected revenue …

Govt appropriated 99 pc of RBI's profits since 2014: Yechury
5 years, 4 months ago

Govt appropriated 99 pc of RBI's profits since 2014: Yechury

India TV News  

CPI general secretary Sitaram Yechury hit out at the Centre on Tuesday over the record cash transfer by the RBI, alleging that the government had "appropriated" 99 per cent of the profits of India's central banking institution since 2014. The Left leader's reaction came a day after the Reserve Bank of India approved the transfer of a record Rs 1.76 …

RBI windfall of Rs 1.76 lakh cr surplus to Centre supports deficit, offers a permanent avenue to raise resources
5 years, 4 months ago

RBI windfall of Rs 1.76 lakh cr surplus to Centre supports deficit, offers a permanent avenue to raise resources

Firstpost  

The government will get a bonanza of around Rs 86,000 crore over and above the budgetary provision of Rs 90,000 crore from the RBI The transfer of reserves of the Reserve Bank of India to the government was a known transaction. The RBI has stated that Rs 1.23 lakh crore would be in the form of surplus and the balance …

Is RBI's Rs 1.76 lakh crore payout to govt to boost fledgling economy?
5 years, 4 months ago

Is RBI's Rs 1.76 lakh crore payout to govt to boost fledgling economy?

India Today  

The government's long-term demand for more money from RBI was fulfilled on Monday. The Reserve Bank of India transferred Rs 1.76 lakh crore, including Rs 52,600 crore of excess capital to the central government account. Where this payout comes from The windfall gain of Rs 1.76 lakh crore from RBI to the government is the outcome of framework change. Last …

RBI to transfer surplus of Rs 1.76 lakh crore to the government as per Bimal Jalan Committee recommendation
5 years, 4 months ago

RBI to transfer surplus of Rs 1.76 lakh crore to the government as per Bimal Jalan Committee recommendation

Op India  

The Reserve Bank of India has decided to transfer an amount of ₹1,76,051 crore to the Government of India. The central bank took this decision by accepting the recommendations of Bimal Jalan Committee on surplus transfer to the government. The ₹1.76 lakh crore to be transferred consists of ₹1,23,414 crore of surplus for the year 2018-19 and ₹52,637 crore of …

Bimal Jalan panel to submit report to RBI soon; suggests transfer of cental bank’s surplus capital in tranches over 3-5 years
5 years, 5 months ago

Bimal Jalan panel to submit report to RBI soon; suggests transfer of cental bank’s surplus capital in tranches over 3-5 years

Firstpost  

The six-member panel, under former RBI governor Jalan was appointed on 26 December 2018, to review the economic capital framework for the RBI. The six-member panel, under former RBI governor Jalan was appointed on 26 December 2018, to review the economic capital framework for the Reserve Bank of India after the finance ministry wanted the central bank to follow global …

RBI capital transfer: Bimal Jalan panel likely to get extension to finalise report; govt to replace its representative after SC Garg's transfer
5 years, 5 months ago

RBI capital transfer: Bimal Jalan panel likely to get extension to finalise report; govt to replace its representative after SC Garg's transfer

Firstpost  

The government and the RBI, during the tenure of the previous governor Urjit Patel, had been at loggerheads over the surplus capital with the central bank. New Delhi: The Bimal Jalan panel may get more time to finalise its report on excess capital transfer from the Reserve Bank of India to the government as Subhash Chandra Garg has been moved …

Jalan panel report on RBI’s capital size to be finalized by June-end: Guv Das
5 years, 6 months ago

Jalan panel report on RBI’s capital size to be finalized by June-end: Guv Das

Live Mint  

The Bimal Jalan committee, which is looking into the size of capital reserves that the RBI should hold, will have one more meeting before finalising its report to be submitted to the apex bank this month-end. The six-member panel, under former RBI Governor Jalan, was appointed on December 26, 2018, to review the economic capital framework for the Reserve Bank …

Bimal Jalan panel to hold at least 2 more meets before final report on RBI capital reserves size
5 years, 8 months ago

Bimal Jalan panel to hold at least 2 more meets before final report on RBI capital reserves size

Firstpost  

A high-level panel looking into appropriate capital reserves the RBI should maintain will hold at least two more meetings before finalising the report, former Reserve Bank governor Bimal Jalan, who is heading the committee, said New Delhi: A high-level panel looking into appropriate capital reserves the RBI should maintain will hold at least two more meetings before finalising the report, …

RBI is accountable to the government, says Bimal Jalan
6 years ago

RBI is accountable to the government, says Bimal Jalan

Live Mint  

New Delhi: The Reserve Bank of India is accountable to the government and should make policies within the framework set by the government, according to a former central bank chief now heading a panel tasked with framing guidelines for the transfer of the RBI’s surplus funds to the government. Bimal Jalan, the 77-year-old ex-bureaucrat, was appointed to chair the panel …

Bimal Jalan panel holds first meet to examine reserve size of RBI, dividend to be given to govt; report likely in April
6 years ago

Bimal Jalan panel holds first meet to examine reserve size of RBI, dividend to be given to govt; report likely in April

Firstpost  

The government and the RBI under previous governor Urjit Patel had been at loggerheads over the Rs 9.6 lakh crore surplus capital with the central bank. New Delhi: A high-level panel led by former Reserve Bank of India governor Bimal Jalan Tuesday held its first meeting to decide on an appropriate size of reserves that the central bank should maintain …

Bimal Jalan to head panel to decide on RBI cash reserves: Former central bank governor enjoys govt support, but committee to have final say
6 years ago

Bimal Jalan to head panel to decide on RBI cash reserves: Former central bank governor enjoys govt support, but committee to have final say

Firstpost  

Jalan will lead a six-member committee which will review the status, need and justification of various provisions, reserves and buffers presently provided for by the RBI The Reserve Bank of India on Wednesday formed an expert committee on economic capital framework led by former RBI governor Bimal Jalan to determine the amount of reserves it needs to keep and the …

Much ado about nothing: Demystifying the needless hue and cry over the RBI
6 years ago

Much ado about nothing: Demystifying the needless hue and cry over the RBI

Op India  

“The only function of economic forecasting is to make astrology look respectable,” remarked the legendary Economist John Kenneth Galbraith. Whoever in Congress thought of RBI autonomy and role in influencing election outcome doesn’t have enough knowledge to even make credible sounding arguments. According to the RBI Act’s Section 7, “the central government may from time to time give such directions …

Arun Jaitley says government does not need RBI funds in next six months, Centre keen to gain control over bank reserves
6 years, 1 month ago

Arun Jaitley says government does not need RBI funds in next six months, Centre keen to gain control over bank reserves

Firstpost  

Critics accuse the government of trying to undermine the RBI’s authority, but Arun Jaitley said the BJP-led government respected the institution’s independence. Mumbai: India does not need money from the Reserve Bank of India in the next six months, Union finance minister Arun Jaitley said in a TV interview on Friday, rejecting opposition charges the government was seeking access to …

Opinion | RBI is from Mars, finance ministry is from Venus
6 years, 2 months ago

Opinion | RBI is from Mars, finance ministry is from Venus

Live Mint  

India’s worst kept secret is that the Reserve Bank of India and the finance ministry do not get along. If the government has to walk alone to face the challenge of growth, we will walk alone.” Part of the reason for the excessive blood letting this time was the strategic leaks of hostile communications between the finance ministry and RBI, …

House panel questions RBI on failure to take pre-emptive action against bad loans
6 years, 4 months ago

House panel questions RBI on failure to take pre-emptive action against bad loans

Live Mint  

New Delhi: A Parliamentary committee has questioned the Reserve Bank of India for failing to take pre-emptive action in checking bad loans in the banking system prior to the Asset Quality Review undertaken in December 2015. The issue of rising non-performing assets or bad loans was a legacy issue, and the RBI’s role had not been up to the mark, …

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