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'Stealing from RBI won't work': Rahul Gandhi on surplus reserves transfer

By Vishal S

New Delhi, Aug 27: Congress MP Rahul Gandhi on Tuesday trained his gun at the BJP-led Union Government over the RBI's central board approving a surplus transfer of Rs 1.76 lakh crore to the government. Central board of the Reserve Bank of India (RBI) on Monday took this decision on the basis on recommendations of the the Bimal Jalan panel's recommendations on Economic Capital Framework (ECF).

    RBI transfers 1.76 lakh crores to govt to give the economy a push

    The former Congress president dubbed the economic problems as 'Self Created' and said that both the Prime Minister and the Finance Minister are clueless.

    Congress MP Rahul Gandhi

    "PM & FM are clueless about how to solve their self created economic disaster. Stealing from RBI won't work - it's like stealing a Band-Aid from the dispensary & sticking it on a gunshot wound," Gandhi tweeted.

    The Jalan panel had submitted its report to the RBI Governor on Friday. The report recommends transfer of surplus reserves to the government in a staggered manner over three-five years based on a predetermined formula.

    The central bank, in consultation with the government, had constituted a committee chaired by former RBI governor Bimal Jalan to review the extant economic capital framework of the RBI.

    [How FM intends to make loans cheaper, spur economic activity?]

    "The committee's recommendations were based on the consideration of the role of central banks' financial resilience, cross-country practices, statutory provisions and the impact of the RBI's public policy mandate and operating environment on its balance sheet and the risks involved," RBI said in a statement.

    With economy facing a slowdown in key sectors, the government is looking at RBI dividends and surplus to step up public investment and tackle funding gaps.

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