Arun Jaitley admits to issues with RBI on credit flow, liquidity as govt under fire for Urjit Patel's sudden exit
6 years, 1 month ago

Arun Jaitley admits to issues with RBI on credit flow, liquidity as govt under fire for Urjit Patel's sudden exit

Firstpost  

Though Jaitley did not explicitly mention it, the discussions he was alluding to were under Section 7 of the RBI Act, through which the government of the day can force down certain policies for the central bank to implement, citing national interest Mumbai: Under fire for the surprise resignation of governor Urjit Patel, senior Union ministers went on an offensive on Thursday, decrying RBI policies as “unreasonable” and also justified the discussions under the never-before-used Section 7. Referring to the banks under the prompt corrective action framework which prevents them routine lending activities and is another pain area for an election-bound government, coal minister Piyush Goyal, who manned had North Block when Jaitley was on medical leave, hit out at RBI for making “unreasonable” amendments to the framework. “The PCA is akin to changing the ground rules halfway through a cricket match,” Goyal said, underlining that the decision was taken by RBI without a go-ahead from its central board or government. Goyal, who also is the Rail minister, termed the speculation about the government wanting to use the excess RBI capital for bridging the fiscal gap as a “canard”.

Minister Central Rbi Goyal Patel Policies Pca Jaitley Section 7 Discussions  sudden  jaitley  liquidity  pca  discussions  central  issues  minister  exit  board  govt  flow  goyal  policies  rbi  banks  urjit  patels

History of this topic

Raghuram Rajan recalls having ’plenty of cooperation’ with govt as RBI governor: ‘Whether BJP or Congress…’
3 weeks, 4 days ago

Raghuram Rajan recalls having ’plenty of cooperation’ with govt as RBI governor: ‘Whether BJP or Congress…’

Live Mint  

Former RBI governor Raghuram Rajan recalled having an amicable relationship with the government during his tenure as RBI governor — irrespective of the party in power. The former top official also recalled a conversation with then Finance Minister Arun Jaitley where he was given the green signal to “clean up” the system after bad loans “tumbled out” during an asset …

Only Mehul Choksi, Nirav Modi and Vijay Mallya now left to be inducted into BJP: Shiv Sena (UBT)
1 year, 6 months ago

Only Mehul Choksi, Nirav Modi and Vijay Mallya now left to be inducted into BJP: Shiv Sena (UBT)

The Hindu  

Days after Nationalist Congress party leader Ajit Pawar joined the Maharashtra government, the Shiv Sena on July 5 claimed that only alleged economic offenders Mehul Choksi, Nirav Modi and Vijay Mallya were left to be inducted into the BJP. Maharashtra NCP crisis | Post-Ajit Pawar’s rebellion, president Sharad Pawar stages massive show of strength in Satara On Sunday, Ajit Pawar …

Rajan reminds Sitharaman: Two-third of his tenure as RBI Guv was under BJP
5 years, 2 months ago

Rajan reminds Sitharaman: Two-third of his tenure as RBI Guv was under BJP

India TV News  

Former RBI Governor Raghuram Rajan, who faced a stinging attack from Finance Minister Nirmala Sitharaman for presiding over the "worst phase" of the Indian banking sector, on Thursday reminded her that two-third of his tenure as the head of the central bank was under the BJP government. Rajan, who was Governor of the Reserve Bank of India from September 5, …

India Inc mourns Arun Jaitley's demise, hails his reform measures
5 years, 4 months ago

India Inc mourns Arun Jaitley's demise, hails his reform measures

India TV News  

Tributes poured in from India Inc with corporate leaders expressing profound grief at the passing away of former Finance Minister and BJP veteran Arun Jaitley here, describing him as a true reformist and great statesman. Mahindra Group Chairman Anand Mahindra also tweeted his condolences, saying "I salute, and pray for the soul of a man who lived by his convictions …

Arun Jaitley leaves behind a rich and chequered legacy
5 years, 4 months ago

Arun Jaitley leaves behind a rich and chequered legacy

India TV News  

After it returned to power with a thumping majority this May, the exhilaration of having achieved 303 seats dimmed slightly for the BJP with Arun Jaitley's announcement that he would not be a part of the Narendra Modi government. Jaitley's tenure saw the GDP grow from 6.4 per cent in FY14 to 7 per cent, fiscal deficit comes down from …

Opinion | An intruder undermines RBI
5 years, 10 months ago

Opinion | An intruder undermines RBI

Live Mint  

Bankruptcy proceedings usually involve protecting a firm’s assets from creditors. The ruling by the bankruptcy court, which is overseeing the government- Already India has lost two RBI governors because, among other things, they dared to ask banks to acknowledge problem loans in time, classify them correctly and make adequate provisions for losses. Already-delayed Indian tribunal proceedings will stretch forever, with …

Jalan panel was finalized when Patel was still RBI governor: FM
6 years ago

Jalan panel was finalized when Patel was still RBI governor: FM

Live Mint  

New Delhi: Finance minister Arun Jaitley on Monday said the composition of the expert committee to suggest how the central bank should handle its reserves, and whether it can transfer its surplus to the government, was finalised when Urjit Patel was still the Reserve Bank of India governor. This is contrary to the belief that the composition of the high-level …

RBI governor Shaktikanta Das meets private sector bankers; discusses liquidity issues
6 years ago

RBI governor Shaktikanta Das meets private sector bankers; discusses liquidity issues

Firstpost  

At the past two meetings held between RBI and state- run banks, Das had deliberated on the prompt correction action framework. Mumbai: The Reserve Bank governor Shaktikanta Das on Thursday held meetings with top private sector lenders and discussed liquidity issues and the flow of credit to small and medium businesses, according to bankers. This is the third meeting Das …

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 …

Arun Jaitley says govt did not ask for Urjit Patel's resignation; 'do not need a single penny from RBI's capital reserves'
6 years ago

Arun Jaitley says govt did not ask for Urjit Patel's resignation; 'do not need a single penny from RBI's capital reserves'

Firstpost  

Arun Jaitley said the government never sought the resignation of Urjit Patel as Governor of the Reserve Bank of India over differences in handling liquidity stress in certain sectors. New Delhi: Finance Minister Arun Jaitley on Tuesday said the government did not seek resignation of Urjit Patel as RBI Governor over differences on some issues, and went on to cite …

‘New RBI governor Shaktikanta Das’ appointment dangerous, could unleash financial terror,’ warns Shiv Sena
6 years, 1 month ago

‘New RBI governor Shaktikanta Das’ appointment dangerous, could unleash financial terror,’ warns Shiv Sena

Hindustan Times  

In a no-holds-barred assault, the Shiv Sena in Mumbai on Saturday termed the appointment of new Reserve Bank of India Governor Shaktikanta Das as “dangerous” with a potential to unleash ‘financial terror’ in the country. The Shiv Sena in Mumbai on Saturday termed the appointment of new Reserve Bank of India Governor Shaktikanta Das as “dangerous” with a potential to …

Amidst speculations over Govt-RBI stand off, Jaitley asks how a mere discussion be considered ‘destruction’ of an institution
6 years, 1 month ago

Amidst speculations over Govt-RBI stand off, Jaitley asks how a mere discussion be considered ‘destruction’ of an institution

Op India  

Finance Minister Arun Jaitley, while speaking at the Times Networks India Economic Conclave today, stated that though there are ‘two or three areas of differences’ between the RBI and the Government, how a mere discussion on its functioning could be considered “destruction” of an institution. Amidst allegations by the opposition that his government has created a situation wherein the Reserve …

RBI board meeting with new governor Shaktikanta Das gets under way; to discuss contentious issues
6 years, 1 month ago

RBI board meeting with new governor Shaktikanta Das gets under way; to discuss contentious issues

Firstpost  

Unlike the last meet, which lasted for 10 hours, Friday’s meeting is likely to get over by afternoon. Mumbai: The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework for the central bank and relaxation in the prompt corrective action norms for at least some of 12 …

Shaktikanta Das is Modi’s Man on RBI Hot Seat, But So Was Urjit Patel Before it Got Too Hot to Handle
6 years, 1 month ago

Shaktikanta Das is Modi’s Man on RBI Hot Seat, But So Was Urjit Patel Before it Got Too Hot to Handle

News 18  

New Delhi: The next Governor of the RBI, Shaktikanta Das, is no stranger to the ways the Modi government works. Not just a senior bureaucrat whom the Modi government seems quite comfortable with, Das has also previously served on the central bank’s board. Remember, among the reasons for the deep divide between the government and the RBI was the perceived …

Shaktikanta Das, who oversaw demonetisation, is new RBI governor
6 years, 1 month ago

Shaktikanta Das, who oversaw demonetisation, is new RBI governor

Live Mint  

New Delhi/Mumbai: The government on Tuesday appointed Shaktikanta Das, member of the fifteenth finance commission, as the governor of the Reserve Bank of India, a day after Urjit Patel resigned at the end of a bruising tussle with the government over the regulator’s independence and the regulation of banks. Das, who was secretary in the department of economic affairs when …

Modi’s road to re-election gets bumpier: Balance of power
6 years, 1 month ago

Modi’s road to re-election gets bumpier: Balance of power

Hindustan Times  

In less than 24 hours, Indian Prime Minister Narendra Modi has lost his central bank governor and – with votes still being counted — his Hindu-nationalist Bharatiya Janata Party could cede its hold over several states.While Modi remains favoured to win re-election next year, things suddenly look less straightforward. Prime Minister Narendra Modi along with his Cabinet Ministers addresses the …

Urjit Patel resignation: An alarming challenge to the RBI
6 years, 1 month ago

Urjit Patel resignation: An alarming challenge to the RBI

Live Mint  

Government is conducting a dangerous experiment in economic management. This week, following renewed pressure to conform to the government’s thinking, the head of the Reserve Bank of India, Urjit Patel, resigned, citing “personal reasons.” Prime Minister Narendra Modi’s officials have challenged the RBI’s operational independence before, but their latest effort marks a significant escalation. It’s a pattern seen elsewhere as …

RBI chief Urjit Patel resigns: 6 areas of conflict with government
6 years, 1 month ago

RBI chief Urjit Patel resigns: 6 areas of conflict with government

Hindustan Times  

A protracted tiff between the Indian government and the Reserve Bank of India climaxed on Monday when central bank governor Urjit Patel resigned, days before a board meeting where he would have faced intense pressure. A protracted tiff between the Indian government and the Reserve Bank of India climaxed on Monday when central bank governor Urjit Patel resigned. Read: RBI …

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 …

Govt slugfest with RBI finally ends in a draw
6 years, 1 month ago

Govt slugfest with RBI finally ends in a draw

Deccan Chronicle  

It was an unequal fight to begin with. Raghuram Rajan, arguably the most flamboyant RBI governor in recent times, who set in motion the deep reforms of banks by tightening prudential oversight, was fond of citing the god of the bond market as the final arbiter of the central bank’s performance. An ugly public spat with the RBI could rake …

Expert committee to look into issues concerning capital surplus: RBI
6 years, 1 month ago

Expert committee to look into issues concerning capital surplus: RBI

India TV News  

Signalling a temporary truce, the Reserve Bank and the government Monday agreed to refer to an expert committee the contentious issue of appropriate size of reserves that the RBI must hold, while restructuring of stressed loans of small businesses would be considered by the central bank. The setting up of the committee, whose members will be decided by the government …

RBI board meet today: Amid tiff with government, central bank likely to debate liquidity crisis
6 years, 1 month ago

RBI board meet today: Amid tiff with government, central bank likely to debate liquidity crisis

Firstpost  

The RBI board is also expected to discuss issues related to making relaxations to its Prompt Corrective Action framework to clean up the balance sheet of banks burdened with NPAs. Mumbai: The RBI’s crucial board meeting on Monday is expected to take up the liquidity crisis that initially triggered a tiff between the government and the central bank, according to …

Money matters: Big day for RBI, Centre ties
6 years, 1 month ago

Money matters: Big day for RBI, Centre ties

Deccan Chronicle  

New Delhi: All eyes will be on the RBI board meeting on Monday in Mumbai to see how the intense public battle erupted out between the Narendra Modi government and the central bank plays out. Earlier this month, economic affairs secretary Subhash Chandra Garg had said that the government has not asked the RBI to transfer '3.6 lakh crore to …

Government, RBI must work together, end turf war
6 years, 1 month ago

Government, RBI must work together, end turf war

Deccan Chronicle  

The ostentatious turf battle between the Union finance ministry and the Reserve Bank of India is not the real issue. As India still reels under the socialist module of controlling economic activities, which the present government perpetuates, the public sector banks are pushed and prodded to finance government schemes, whether it be infrastructure projects, agriculture loans and loan waivers, start-up …

RBI vs govt: At 19 November board meet, S Gurumurthy’s economic theories and other pain points await Urjit Patel
6 years, 1 month ago

RBI vs govt: At 19 November board meet, S Gurumurthy’s economic theories and other pain points await Urjit Patel

Firstpost  

Battle lines are drawn and fireworks are likely at the central bank’s board meet scheduled for 19 November. The 18-member central board of the RBI has five members from the central bank including the governor and the rest are government nominees. The signals are clear from the recent statements of Swaminathan Gurumurthy, the RBI’s board member who was recently appointed …

Govt to continue pressing Reserve Bank of India for relaxing norms, funds to boost lending
6 years, 2 months ago

Govt to continue pressing Reserve Bank of India for relaxing norms, funds to boost lending

Firstpost  

The reports of rift between the central bank and the government surfaced last month following which the finance ministry reportedly started discussion with the RBI under the never-used before Section 7 of the RBI Act. New Delhi: Keeping up the heat on the Reserve Bank of India, the government will continue to press the central bank to relax norms to …

RBI autonomy: Bimal Jalan says it’s central bank’s job to implement govt policy, governor should quit if differences cannot be resolved
6 years, 2 months ago

RBI autonomy: Bimal Jalan says it’s central bank’s job to implement govt policy, governor should quit if differences cannot be resolved

Firstpost  

The sharply depreciating rupee amidst rising global oil prices and the massive foreign funds outflow from the capital market are not crises If there are irreconcilable differences of opinion between the government and the regulator, then ‘whoever is heading the agency should step down,’ said Bimal Jalan, former governor to RBI to Mint. The sharply depreciating rupee amidst rising global …

Govt vs RBI: Arun Jaitley, Urjit Patel settle for an uneasy truce, for now
6 years, 2 months ago

Govt vs RBI: Arun Jaitley, Urjit Patel settle for an uneasy truce, for now

Live Mint  

New Delhi/Mumbai: A day after the two sides publicly and bitterly crossed each other, the Reserve Bank of India and the union government took a step back on Wednesday. Conceding that differences can arise, the carefully-worded finance ministry release admonished RBI, saying, “ government of India has never made public the subject matter of those consultations. The first letter was …

Govt may have invoked law to issue directions to RBI
6 years, 2 months ago

Govt may have invoked law to issue directions to RBI

Live Mint  

New Delhi: The crisis between the government and the Reserve Bank of India seems to be escalating with the government reportedly invoking Section 7 of the Reserve Bank of India Act in an unprecedented move. Under Section 7 of the RBI Act of 1934, “the central government may from time to time give such directions to the bank as it …

Arun Jaitley holds high-level meeting to discuss liquidity issues; no discussion on RBI-govt differences, says report
6 years, 2 months ago

Arun Jaitley holds high-level meeting to discuss liquidity issues; no discussion on RBI-govt differences, says report

Firstpost  

Unlike in the past, all the four RBI deputy governors attended Tuesday’s FSDC meeting along with Patel. Finance Minister Arun Jaitley on Tuesday held a high-level meeting with financial sector regulators and discussed interest rates and liquidity issue faced by the non-banking financial companies. The FSDC, comprising of Reserve Bank of India governor, SEBI chairman, and heads of other regulators …

Government trying to destroy autonomous structure of RBI: Congress
6 years, 2 months ago

Government trying to destroy autonomous structure of RBI: Congress

The Quint  

New Delhi, Oct 30 Sharpening its attack on Finance Minister Arun Jaitley, the Congress on Tuesday accused the government of trying to destroy autonomous institutions like the Reserve Bank of India and alleged him of interfering in the work of the central bank. Equally important is to remember the role of the RBI as the payment regulator cannot be diluted …

RBI responsible for mountain of bad loans, says Finance Minister Arun Jaitley
6 years, 2 months ago

RBI responsible for mountain of bad loans, says Finance Minister Arun Jaitley

India TV News  

Holding the central bank responsible for the mountain of bad loans, Finance Minister Arun Jaitley on Tuesday said Reserve Bank looked the other way when banks lent indiscriminately during 2008-14 to keep the economy humming. Jaitley's comments reflect a growing tension between the RBI and the government, days after the central bank Deputy Governor Viral Acharya made a bold pitch …

RBI chief Urjit Patel set to meet Arun Jaitley today amid growing rift
6 years, 2 months ago

RBI chief Urjit Patel set to meet Arun Jaitley today amid growing rift

Live Mint  

Mumbai: India’s finance minister and its central bank governor are set to meet face-to-face in New Delhi on Tuesday amid mounting tension between them over the autonomy of monetary policy makers. Finance Minister Arun Jaitley will chair a meeting of the Financial Stability and Development Council, which Governor Urjit Patel is scheduled to attend. The tension prompted former Finance Minister …

Urjit Patel is finally defending RBI from Modi: Rahul
6 years, 2 months ago

Urjit Patel is finally defending RBI from Modi: Rahul

The Quint  

Congress president Rahul Gandhi. New Delhi, Oct 29 Congress President Rahul Gandhi on Monday hailed Reserve Bank of India Governor Urjit Patel for 'defending' the central bank from Prime Minister Narendra Modi's government, after reports suggested that tension prevailed between the RBI and the Centre. RBI Deputy Governor Viral Acharya had last week spoken on the need for the central …

Subramanian Swamy questions circumstances of Vijay Mallya's escape: A look at CBI's U-turn on lookout notices
6 years, 4 months ago

Subramanian Swamy questions circumstances of Vijay Mallya's escape: A look at CBI's U-turn on lookout notices

Firstpost  

Fugitive businessman Vijay Mallya has stirred up a storm with his statement that he met Finance Minister Arun Jaitley before leaving the country in March 2016. Even as Jaitley has refuted Mallya’s claims by saying that “Mallya used his MP privilege to accost him” in Parliament, BJP’s Subramanian Swamy has unleashed his attack on the finance minister. Even as Jaitley …

Congress demands Arun Jaitley’s resignation
6 years, 4 months ago

Congress demands Arun Jaitley’s resignation

The Hindu  

Calling it an open and shut case of letting fugitive businessman Vijay Mallya run away, Congress president Rahul Gandhi on Thursday asked for the resignation of Finance Minister Arun Jaitley and accused him of lying. We have Punia ji here and he seen with his own eyes the meeting between Arun Jaitley ji and Vijay Mallya in Parliament," Mr. Gandhi …

Check out Congress's KBC-style question on Jaitley-Mallya meeting
6 years, 4 months ago

Check out Congress's KBC-style question on Jaitley-Mallya meeting

India Today  

It's an election year and the season of questions has just begun. What else but the meeting between Union Finance Minister Arun Jaitley and fugitive liquor baron Vijay Mallya. On Wednesday, the Congress tweeted a post using a screenshot of the popular quiz show 'Kaun Banega Crorepati', hosted by Amitabh Bachchan. WHEN THINGS BACKFIRE While the Congress, with this post, …

Rahul Gandhi asks Arun Jaitley to step down over Mallya's met-FM comment
6 years, 4 months ago

Rahul Gandhi asks Arun Jaitley to step down over Mallya's met-FM comment

India Today  

Reacting to Vijay Mallya's comment that he met Arun Jaitley before leaving India, Congress chief Rahul Gandhi said that PM Narendra Modi should launch an independent probe into the matter. Vijay Mallya has earlier said that he had met Finance Minister Arun Jaitley before leaving India. - Jaitley Later, Mallya clarified his statement and said that he never met Arun …

RBI nominee on PSU boards create illusion of regulatory control: Raghuram Rajan
6 years, 4 months ago

RBI nominee on PSU boards create illusion of regulatory control: Raghuram Rajan

Live Mint  

New Delhi: Former Reserve Bank of India governor Raghuram Rajan is not in favour of having an RBI nominee on the boards of public sector banks, saying it creates an “illusion that the regulator is in control”. Its nominees on bank boards have no commercial lending experience and can only try and make sure that processes are followed,” he said …

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