Govt says not considering giving more powers to RBI to deal with state-owned banks
6 years ago

Govt says not considering giving more powers to RBI to deal with state-owned banks

Firstpost  

The powers of the RBI are wide-ranging and comprehensive to deal with various situations that may emerge in all banks, including public sector banks, said Minister of State for Finance Shiv Pratap Shukla in the Rajya Sabha New Delhi: The government is not currently considering any proposal to give more powers to the Reserve Bank of India to deal with state-owned banks, said Minister of State for Finance Shiv Pratap Shukla in the Rajya Sabha on Tuesday. The powers of the RBI are wide-ranging and comprehensive to deal with various situations that may emerge in all banks, including public sector banks, he said in written reply. “No proposal with regard to change in the RBI’s powers in respect of public sector banks is presently under consideration/consultation,” he said while replying to a question if the government was contemplating to give more powers to the RBI to enable it to regulate public sector banks in wake of recent scams. To another question, Minister of State for Finance P Radhakrishnan said the government has requested the RBI for an interim surplus on analogy of the previous year when interim surplus was requested by the government and transferred by the RBI.

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History of this topic

DC Edit | RBI’s booster shot to economy
7 months, 3 weeks ago

DC Edit | RBI’s booster shot to economy

Deccan Chronicle  

The Reserve Bank of India transferred a whopping amount of Rs 2.1 lakh crores to the Central government as a dividend payout, giving a booster shot to volatile stock markets. The current payout is 141 per cent higher than the ₹87,416 crores that the RBI had given the Central government last year and is Rs 1.1 lakh crores more than …

Welcome bounty: On the RBI’s ₹2.11-lakh-crore transfer to the Union government
7 months, 3 weeks ago

Welcome bounty: On the RBI’s ₹2.11-lakh-crore transfer to the Union government

The Hindu  

The decision by the Reserve Bank of India’s board to transfer a record surplus of almost ₹2.11 lakh crore to the Union government for 2023-24 will serve as a welcome shot in the arm for the new government when it presents its Budget in July. More than double the previous year’s ₹87,416 crore payout as well as the ₹1.02 lakh …

ECONOMIC PERSPECTIVES | Neoliberal dilemma: Public sector banks turn a profit but privatisation not on cards for now
1 year, 7 months ago

ECONOMIC PERSPECTIVES | Neoliberal dilemma: Public sector banks turn a profit but privatisation not on cards for now

The Hindu  

Published : Jun 02, 2023 15:59 IST - 6 MINS READ The government’s economic spokespersons have been celebrating an ostensibly remarkable recovery in the country’s public banking sector. To ensure the solvency of and capital adequacy in banks, the government had to infuse Rs.3,10,997 crore into the public banking system from 2016-17 to 2020-21. Ever since the release of the …

Centre unlikely to announce capital infusion for PSU banks in Budget 2022-23
3 years, 1 month ago

Centre unlikely to announce capital infusion for PSU banks in Budget 2022-23

Firstpost  

Finance Minister Nirmala Sitharaman is expected to present the fourth budget of the Modi 2.0 government on 1 February New Delhi: The government is unlikely to announce capital infusion for public sector banks in the upcoming Budget, as their financial health has improved on the back of reduction in bad loans, sources said. During the last financial year, PSBs raised …

Union Budget 2021: Sitharaman defends privatisation of PSBs in interview with News18, says India needs more efficient banks
3 years, 11 months ago

Union Budget 2021: Sitharaman defends privatisation of PSBs in interview with News18, says India needs more efficient banks

Firstpost  

In an exclusive interview to CNN-News18’s Rahul Joshi after unveiling the Union Budget 2021 on Monday, Union minister Nirmala Sitharaman weighed in on the key takeaways from the budiget and defended the Centre’s push for disinvestment, including two public sector banks. Speaking to Network18 Group Editor Rahul Joshi, Sitharaman said that the Centre is looking at setting up a holding …

Engaging With RBI on Privatisation of Govt-Run Banks in Big Way, Can't Have Laggards: Nirmala Sitharaman
3 years, 11 months ago

Engaging With RBI on Privatisation of Govt-Run Banks in Big Way, Can't Have Laggards: Nirmala Sitharaman

News 18  

Finance minister Nirmala Sitharaman on Monday told the News18 Network that the government had engaged with the Reserve Bank of India in a “big way” as she outlined a timeline for meeting divestment targets set in her Budget 2021 speech. Speaking to News18 Network’s Editor-in-Chief Rahul Joshi, the finance minister said that the country needs efficient banks for the economy …

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run
3 years, 11 months ago

Economic Survey 2021: Under-Capitalisation of Banks Will Hamper Economic Growth in Long Run

News 18  

The Economic Survey 2021, released on January 29 ahead of the Union Budget 2021, has called for adequate capitalisation of public sector banks flagging fears of lenders resorting to risk-shifting, which will, in turn, impact the economy which has just begun its upward rise months after the crippling impact of the Covid-19 pandemic. Public sector banks account for 60 per …

RBI Raises Concerns Over Zero-coupon Bond for PSB Recapitalisation, Talks on With Govt for Solution
4 years ago

RBI Raises Concerns Over Zero-coupon Bond for PSB Recapitalisation, Talks on With Govt for Solution

News 18  

New Delhi: The Reserve Bank of India has expressed some concerns over zero-coupon bonds for the recapitalisation of public sector banks and discussion is on between the central bank and Finance Ministry to find a solution, according to sources. The government resorted to recapitalisation bonds with a coupon rate for capital infusion into PSBs during 2017-18 and interest payment to …

The battle to save banks
4 years, 3 months ago

The battle to save banks

India Today  

The battle for saving banks has been a long drawn one. Speaking at the seventh SBI Banking and Economics Conclave in July, RBI governor Shaktikanta Das said: “The economic impact of the pandemic due to the lockdown and the anticipated post-lockdown compression in economic growth may result in higher NPAs and capital erosion of banks. A recapitalisation plan for PSBs …

Govt Seeks Parliament Nod for Rs 20,000 Crore Capital Infusion in Public Sector Banks
4 years, 4 months ago

Govt Seeks Parliament Nod for Rs 20,000 Crore Capital Infusion in Public Sector Banks

News 18  

The government on Monday sought Parliament’s approval for infusing Rs 20,000 crore in public sector banks in the current financial year to meet regulatory requirements. “For meeting expenditure towards recapitalisation of Public Sector Banks through issue of Government Securities” the government has asked for Parliament’s authorisation of Rs 20,000 crore, as per a document. In 2019-20, the government proposed to …

RBI Surplus Transfer to Govt at 44%; Lowest in Last 7 Years: Former Fin Secy SC Garg
4 years, 4 months ago

RBI Surplus Transfer to Govt at 44%; Lowest in Last 7 Years: Former Fin Secy SC Garg

News 18  

Former Finance Secretary SC Garg said on Wednesday that the RBI transferred only 44 per cent of its surplus or income to the government, which is the lowest in percentage terms in the last seven years. Earlier this month, the RBI board approved a surplus transfer of Rs 57,128 crore to the central government for Accounting Year 2019-20. In August …

RBI Balance Sheet Expands by 30% in 2019-20
4 years, 4 months ago

RBI Balance Sheet Expands by 30% in 2019-20

News 18  

The size of the Reserve Bank’s balance sheet, which is reflective of activities carried out by it in pursuance of currency issue function as well as monetary policy and reserve management objectives, has increased by 30.02 per cent in the year ended June 30, 2020, says its annual report. The balance sheet increased by Rs 12,318.88 billion to Rs 53,347.93 …

Public sector banks' NPAs likely to rise by 2-4%; may push govt to recapitalise via RBI reserves, bonds: Report
4 years, 8 months ago

Public sector banks' NPAs likely to rise by 2-4%; may push govt to recapitalise via RBI reserves, bonds: Report

Firstpost  

State-owned banks’ non-performing loans are likely to rise by 2-4 percentage points, which will put up to $15 billion recapitalisation pressure on the government in FY21, a foreign brokerage firm said on Tuesday Mumbai: State-owned banks’ non-performing loans are likely to rise by 2-4 percentage points, which will put up to $15 billion recapitalisation pressure on the government in FY21, …

RBI’s profit more than trebles in 2018-19 on lower expenses
5 years, 4 months ago

RBI’s profit more than trebles in 2018-19 on lower expenses

Live Mint  

Reserve Bank of India’s profit for 2018-19 more than trebles to ₹1.76 trillion owing to lower expenditure and higher other income, which has enabled a higher surplus transfer to the government. Simultaneously, other income rose nearly 20 times on a y-o-y basis to ₹86,199 crore after the central bank wrote back excess provisions from balance sheet to the profit and …

Why the RBI's Rs 1.76 lakh crore surplus transfer has sparked a debate
5 years, 4 months ago

Why the RBI's Rs 1.76 lakh crore surplus transfer has sparked a debate

India Today  

On August 26, the central board of the Reserve Bank of India decided to transfer a surplus of Rs 1.76 lakh crore to the government-its highest transfer ever-sparking a fierce debate. The surplus from the central bank comprised two components-Rs 1.23 lakh crore of surplus for the year 2018-19 and an additional Rs 52,637 crore of excess provisions that was …

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 …

RBI can pay interim dividend to govt in exceptional cases: Jalan panel
5 years, 4 months ago

RBI can pay interim dividend to govt in exceptional cases: Jalan panel

Live Mint  

Mumbai: A Reserve Bank of India panel, led by former governor Bimal Jalan, has recommended that the central bank pay interim dividend to the government, a practice that started in 2016-17, only under exceptional circumstances. The Jalan committee has also recommended that RBI’s capital framework be reviewed every five years and its accounting year be aligned with the fiscal year …

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 …

RBI to transfer highest-ever surplus of Rs 1.76 lakh cr to govt; all you need to know about central bank's excess capital
5 years, 4 months ago

RBI to transfer highest-ever surplus of Rs 1.76 lakh cr to govt; all you need to know about central bank's excess capital

Firstpost  

The Narendra Modi government and the RBI under its previous governor Urjit Patel had been at loggerheads over the optimum level of surplus capital with the central bank. Governor Shaktikanta Das-led RBI central board on Monday gave its nod for transferring to the government a sum of Rs 1,76,051 crore comprising Rs 1,23,414 crore of surplus for the year 2018-19 …

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 …

RBI to transfer record surplus of Rs 1.76 lakh crore to Government of India
5 years, 4 months ago

RBI to transfer record surplus of Rs 1.76 lakh crore to Government of India

India TV News  

The Reserve Bank of India on Monday approved the transfer of record Rs 1.76 lakh crore dividend and surplus reserves to the government, boosting Prime Minister Narendra Modi-led regime's prospect to stimulate the slowing economy without widening fiscal deficit. Governor Shaktikanta Das-led RBI central board gave its nod for transferring to the government a sum of Rs 1,76,051 crore comprising …

RBI Board meeting today to finalise annual accounts, to take up Bimal Jalan committee's recommendation
5 years, 4 months ago

RBI Board meeting today to finalise annual accounts, to take up Bimal Jalan committee's recommendation

Firstpost  

The RBI follows a July-June financial year and the dividend is usually distributed in August after annual accounts are finalised The Bimal Jalan committee’s recommendations on Economic Capital Framework along with the dividend payment to the government may be taken up in the Reserve Bank of India board meeting to be held today, sources said. Sources had earlier told IANS …

RBI to transfer Rs 1.76 lakh crore from surplus reserve to government
5 years, 4 months ago

RBI to transfer Rs 1.76 lakh crore from surplus reserve to government

India Today  

The Reserve Bank of India on Monday approved the transfer of record Rs 1.76 lakh crore dividend and surplus reserves to the government, boosting Prime Minister Narendra Modi-led regime's prospect to stimulate the slowing economy without widening fiscal deficit. Governor Shaktikanta Das-led RBI central board gave its nod for transferring to the government a sum of Rs 1,76,051 crore comprising …

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 …

Proposed Rs 70,000-cr capital infusion into public sector banks credit positive, to boost economy: S&P
5 years, 6 months ago

Proposed Rs 70,000-cr capital infusion into public sector banks credit positive, to boost economy: S&P

Firstpost  

The capital infusion will help some banks to come out of the central bank’s prompt corrective action and resume lending and clean up their balance sheets, she added. New Delhi: The proposed Rs 70,000-crore capital infusion into public sector banks will provide a timely booster to these lenders, S&P Global Ratings has said. “We believe the capital infusion will help …

Budget 2019: FM announced fresh capital infusion of Rs 70,000 crore into PSBs to help credit growth
5 years, 6 months ago

Budget 2019: FM announced fresh capital infusion of Rs 70,000 crore into PSBs to help credit growth

India Today  

The Budget 2019, presented by Finance Minister Nirmala Sitharaman, has announced an infusion of Rs 70,000 crore into public sector banks to help improve credit growth in the economy. Nirmala Sitharaman also highlighted in her speech that six public sector banks have already been brought out of the Prompt Corrective Action framework’. Over the last five financial years, PSBs have …

Budget 2019: Government likely to allot Rs 30,000 crore to PSU banks
5 years, 6 months ago

Budget 2019: Government likely to allot Rs 30,000 crore to PSU banks

India Today  

The government is likely to allot Rs 30,000 crore to public sector banks in the upcoming full budget 2019 as they have been struggling to meet the minimum regulatory capital requirement. Newly appointed finance minister Nirmala Sitharaman, who will be presenting the full budget on July 5, is expected to make an announcement about the provision-a move experts feel is …

Resolving India’s banking crisis
5 years, 8 months ago

Resolving India’s banking crisis

The Hindu  

The government that assumes office after the general election will have to crack a serious and unresolved problem: India’s banking sector. Public sector banks accounted for ₹8.9 trillion, or 86%, of the total NPAs. In 2018, the State Bank of India’s gross NPA/gross advances ratio was 10.9%. Second, the government must infuse at one go whatever additional capital is needed …

Govt announces Rs 48,239 cr recapitalisation plan for 12 public sector banks
5 years, 10 months ago

Govt announces Rs 48,239 cr recapitalisation plan for 12 public sector banks

India TV News  

In order to help maintain regulatory capital requirements and finance growth plans, the finance ministry on Wednesday announced to pump in Rs 48,239 crore in 12 public sector banks. The government will infuse Rs 9,086 crore in Corporation Bank and Rs 6,896 crore in Allahabad Bank -- the two "better-performing" banks currently under the Prompt Corrective Action supervision of the …

RBI lifts lending curbs on Bank of India, Bank of Maharashtra, Oriental Bank of Commerce; move to expand loan growth
5 years, 11 months ago

RBI lifts lending curbs on Bank of India, Bank of Maharashtra, Oriental Bank of Commerce; move to expand loan growth

Firstpost  

Mumbai: In a significant move, the Reserve Bank of India on Thursday lifted lending curbs on three out of 11 weak public sector banks as the central bank under new Governor Shaktikanta Das met one of the key demands of the government for boosting credit growth. “It has been decided that BoI and BoM which meet the regulatory norms including …

PSU banks set to get ₹28,615 crore capital infusion
6 years ago

PSU banks set to get ₹28,615 crore capital infusion

Live Mint  

New Delhi: The government is likely to infuse ₹ 28,615 crore into seven public sector banks through recapitalisation bonds by the end of this month, sources said on Thursday. Out of the seven state-owned banks, Bank of India is likely to get the highest amount of ₹ 10,086 crore, followed by Oriental Bank of Commerce, which might get ₹ 5,500 …

Why govt is upping the ante on PSU bank recapitalisation plan
6 years ago

Why govt is upping the ante on PSU bank recapitalisation plan

Live Mint  

When finance minister Arun Jaitley presented the budget for 2018-19, he allocated ₹ 65,000 crore to recapitalise public sector banks. Late last week, the PSU bank recapitalisation outlay was increased by a little over 63% to ₹ 1.06 trillion. Of this, ₹ 8,247 crore has gone to Punjab National Bank, the second-largest PSU bank in India. The Reserve Bank of …

Govt seeks ₹41,000 crore more for bank recapitalisation
6 years ago

Govt seeks ₹41,000 crore more for bank recapitalisation

Live Mint  

New Delhi/Mumbai: The government on Thursday sought Parliament’s approval for supplementary grants worth ₹ 41,000 crore to infuse fresh capital into ailing state-run banks in the current fiscal. With the additional ₹ 41,000 crore of capital infusion by 31 March, the government will be infusing a total ₹ 83,000 crore into public sector banks this year. “This entire exercise will …

Govt to infuse Rs 83,000 cr in public sector banks in next few months: Arun Jaitley
6 years ago

Govt to infuse Rs 83,000 cr in public sector banks in next few months: Arun Jaitley

Firstpost  

The recapitalisation will enhance the lending capacity of state-owned banks and help them come out of the RBI’s Prompt Corrective Action framework, Arun Jaitley said. New Delhi: The government on Thursday said it will enhance the capital infusion in public sector banks to Rs 83,000 crore, taking the total to Rs 1.06 lakh crore for the fiscal. The capital will …

Govt mulls additional Rs 30,000 cr capital infusion in PSBs; several banks' NPA rises during two quarters
6 years, 1 month ago

Govt mulls additional Rs 30,000 cr capital infusion in PSBs; several banks' NPA rises during two quarters

Firstpost  

Despite this relaxation, PSBs need more funds to meet global capital norms called Basel III as the RBI has retained the CRAR at 9 percent. New Delhi: The government is considering additional capital infusion of up to Rs 30,000 crore in public sector banks as they have been unable to raise required funds from the markets, sources said. As part …

RBI-govt spat: Uneasy calm prevails as both sides seek to cool down temperatures, but rift far from over
6 years, 1 month ago

RBI-govt spat: Uneasy calm prevails as both sides seek to cool down temperatures, but rift far from over

Firstpost  

At the RBI board meeting on that day, neither side actually blinked on the issue of transferring reserves from the RBI to the government’s accounts In the Cold War era, they called it détente : but 19 November was not for the first time that there was an easing in the strained relations between the Reserve Bank of India and …

Govt does not need money from RBI in next 6 months, says Arun Jaitley; 'respect autonomy' of central bank
6 years, 1 month ago

Govt does not need money from RBI in next 6 months, says Arun Jaitley; 'respect autonomy' of central bank

Firstpost  

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

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 …

Government wants to ‘capture’ RBI’s reserves, says Congress leader P Chidambaram
6 years, 1 month ago

Government wants to ‘capture’ RBI’s reserves, says Congress leader P Chidambaram

Hindustan Times  

Ahead of RBI Board meeting, Congress leader P Chidambaram Sunday alleged that the central government was determined to “capture” the bank to gain control over its Rs 9 lakh crore reserves. Congress leader P Chidambaram Sunday alleged that the central government was determined to “capture” the bank to gain control over its Rs 9 lakh crore reserves. The government on …

What’s the Beef... Err Problem Between Modi Government and RBI?
6 years, 2 months ago

What’s the Beef... Err Problem Between Modi Government and RBI?

The Quint  

Provisioning on a One-Day Default The government and several bankers see this requirement as unusually strict and impractical. But for a system which has been so lax and prone to “ever-greening abuse” for decades, perhaps the RBI was justified in using a “shock and awe” tactic to force compliance. Also, the government’s entreaty to exempt power companies from these provisions …

Dear govt, RBI income is not meant for your expenses
6 years, 2 months ago

Dear govt, RBI income is not meant for your expenses

Live Mint  

What would a householder do when its expenses threaten to outstrip income? Hence when it looked like its fiscal math was too difficult to manage, the government seems to have hit upon a new reserve, called the Reserve Bank of India. The latest string of arguments from the government including tweets of the economic affairs secretary suggest that the government …

Government-RBI rift: Forcing central bank to give Rs 3.6 lakh cr from cash reserves would jeopardise inflation story
6 years, 2 months ago

Government-RBI rift: Forcing central bank to give Rs 3.6 lakh cr from cash reserves would jeopardise inflation story

Firstpost  

Every year since 2014, the RBI has transferred all the profits it has made to the government It may the first time it has been tried in India, but ‘raiding’ the central bank’s balance sheet and financial resources to meet government spending needs is not uncommon. Now, finance minister Arun Jaitley wants to take Rs 3.6 lakh crore out of …

Govt wants Rs 3.6 lakh crore cash surplus from RBI: Eating into central bank's reserves is a dangerous idea, will set a bad precedent
6 years, 2 months ago

Govt wants Rs 3.6 lakh crore cash surplus from RBI: Eating into central bank's reserves is a dangerous idea, will set a bad precedent

Firstpost  

As this has not been done before, doing it now will definitely send a signal that all is not well with the government’s finances and will hence raise several questions on the running of the Budget. Hence, a prolonged liquidity issue with banks that is supported by the RBI is paradoxically good for the government as the central bank’s income …

Govt wants RBI to transfer its surplus of Rs 3.6 lakh crore; central bank believes move will impact macroeconomic stability
6 years, 2 months ago

Govt wants RBI to transfer its surplus of Rs 3.6 lakh crore; central bank believes move will impact macroeconomic stability

Firstpost  

RBI is of the view that the use of its reserves will hurt the government’s commitment to fiscal prudence. The finance ministry reportedly wants Reserve Bank of India to transfer a surplus of Rs 3.6 lakh crore and believes that the central bank’s capital requirements and terms for the transfer of its reserves to the government are based on a …

RBI annual report 2017-18: Central bank says lenders will witness further deterioration in NPAs in FY19
6 years, 4 months ago

RBI annual report 2017-18: Central bank says lenders will witness further deterioration in NPAs in FY19

Firstpost  

The combined impact of the increase in provisioning against NPAs and mark-to-market treasury losses on account of the hardening of yields eroded the profitability of banks, resulting in net losses, RBI report said New Delhi: Reserve Bank of India said on Wednesday that banks will witness further deterioration in their non-performing assets or bad loans due to the “economic situation …

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