• search

No proposal to ask RBI to transfer Rs 3.6 lakh crore

Subscribe to Oneindia News
For Quick Alerts
ALLOW NOTIFICATIONS
For Daily Alerts

    New Dlehi, Nov 9: The Department of Economic Affairs on Friday clarified that there was no proposal to ask RBI to transfer Rs 3.6 or 1 lakh crore, as speculated in media.

    SC Garg, Department of Economic Affairs (DEA) Secretary

    SC Garg, Department of Economic Affairs (DEA) Secretary, said, "Lot of misinformed speculation is going around in media. Government's fiscal math is completely on track. There is no proposal to ask RBI to transfer 3.6 or 1 lakh crore, as speculated."

    Also Read | Govt will push RBI to hand over Rs 3.6 lakh crore even if it risks Urjit's resignation: Report

    "Government's Fiscal Deficit in FY 2013-14 was 5.1 per cent. 2014-15 onwards, the GoGovernmentvt succeeded in bringing it down. We'll end FY 2018-19 with FD of 3.3 per cent, " said (DEA) Secretary.

    He further said that the Government has foregone Rs 70000 crore of budgeted market borrowing this year. The only proposal under discussion is to fix RBI's apt economic capital framework.

    There were media reports speculating a proposal by the Finance Ministry seeking to transfer a surplus of Rs 3.6 lakh crore, more than a third of the total Rs 9.59 lakh crore reserves of the central bank, to the government.

    Also Read | Information panel sends notice to RBI chief over wilful defaulters' list

    The Finance Ministry claims that the existing economic capital framework - which governs the RBI's capital requirements and terms for the transfer of its reserves to the government - is based on a very "conservative" assessment of risk by the central bank.

    The Congress had accused Prime Minister Narendra Modi's government of being bent on "snatching" the contingency reserves of the RBI amid a tussle that has seen the central bank officials call out for greater autonomy.

    For Breaking News from Oneindia
    Get instant news updates throughout the day.

    X
    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more