RBI English news | RBI, Latest News & Live Updates in English | English News (Latest English News) at Lokmattimes.com

"Nowhere in the world the central bank keeps the profits with them. Government owns the RBI profit. The whole picture painted by the RBI executives of that time is that the surplus is the property of RBI which the government wants to take away. It was an anti-patriotic picture with imprudent approach. They (the erstwhile RBI managers) also know, as professional bankers, that nowhere in the world the profits are kept with the central bank," Ashiwini Mahajan, the co-convenor of Swadeshi Jagran Manch (SJM), the economic wing of the Rashtriya Swayamsevak Sangh (RSS) told ."Over the years, the reserves got piled up. The new (Jalan) panel has now given a road map under which the reserves would be transferred to the government. It is the right of the people of this country representated by the government to make use of any profit made by the monetary authorities. RBI has no contingency. Central government does the recapitalisation of banks, any risk to depositors' money, government takes care, so where is RBI's contingency?" asked Mahajan.Government had set up a six-member committee headed by former RBI Governor Jalan to examine the central bank's requirements on provisions, reserves and buffers to determine how much of the reserves could be transferred to the government. The committee had recommended that the surplus reserve held by the central bank be transferred to the government in tranches over three to five years.But the fight over the RBI profits and surpluses saw skirmishes between North Block and then RBI management led by Governor Urijit Patel and his deputy Viral Acharya who said the funds belonged to RBI. After a bitter inconclusive fight, a panel was set up under Bimal Jalan which has finalised the report but yet to submit it. There was lack of consensus over the transfer of profits and surplus in that panel as well, where the former finance secretary and Finance Ministry nominee Subhash Chandra Garg dissented on the worked out formula.As per the annual report of RBI, the total reserves are Rs 9.59 lakh crore.( With inputs from IANS )

RbiFOLLOW

Rbi, Latest News

had plenty of action and also drama. The week began on a weak note and was followed on Tuesday by the disappearance of Coffee Day's promoter V.G. Siddhartha which culminated in his body being found in a river. Markets recovered on Wednesday but lost ...

Concerns over the flight of foreign funds along with fears of further escalation in US-China trade war are expected to keep the Indian equity markets volatile during the upcoming week. ...

The Supreme Court has granted six weeks time to the Reserve Bank of India (RBI) to file a report whether WhatsApp had complied with norms for launching its payment services. ...

The Finance Ministry on Friday said it will put in place an oversight mechanism for the one-time partial credit guarantee scheme for public sector banks (PSBs) for purchase of high-rated pooled assets of financially sound non-banking finance companie ...

Swadeshi Jagran Manch, the economic wing of the Rashtriya Swayamsevak Sangh has hit out at the Reserve Bank of India for not lowering rate of interest even when the inflation is down to 2 per cent, holding it responsible for the current slowdown in t ...

With demand still slackening, global agencies downgrading India's growth and no stimulus from the Budget, the Reserve Bank of India (RBI) is expected to administer another rate cut to boost the economy. ...

State-run Punjab Natiuonal Bank (PNB) subsidiary PNB Housing Finance Ltd on Monday announced it has raised $100 million (around Rs 690 crore) from the International Finance Corporation (IFC) under the recently allowed automatic External Commercial Bo ...

The Swadeshi Jagran Manch, an influential economic affiliate of the ruling BJP, has said government is the sole owner of the RBI profits and surpluses and has hit out at the earlier central bank management for sending out the impression that the Cent ...