Government: “No plan To Ask RBI For Rs 3.6 Lakh Crore, As Speculated”

Government: “No plan To Ask RBI For Rs 3.6 Lakh Crore, As Speculated”

New Delhi: In a tweet Subhash Chandra Garg, economic affairs secretary in the finance ministry, there is no proposal from the government to ask the Reserve bank of India to transfer its surplus reserves. It also added that “ Dismissing reports previously this week that it was seeking between Rs 1 lakh crore and Rs 3.6 lakh crore from the central bank’s reserves.”

Proposal concerning the reserves Mr. Garg mentioned that the government was discussing ways 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.

Former Finance Minister P Chidambaram said that the past between the government and the RBI was over a huge sum of money the government has demanded from the central bank. He further added that the imposition of a never-before-used rule was meant to force the hand of RBI Governor Urjit Patel, to pay Rs 1 lakh crore from the reserves of the Reserve bank of India, who has refused to pay”

Referring to the scheduled board meeting Mr. Chidambaram has said that “ Hope the Governor stands his grounds. The government is trying to step up expenditure in an election year despite facing a fiscal deficit.

by Priti on November 9, 2018

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