Govt determined to 'capture' RBI's Rs 9 lakh crore reserves: P Chidambaram


New Delhi, Nov 18(PTI): 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.

In a series of tweets, the former finance minister also claimed that the government and the Reserve Bank of India (RBI) was heading towards a "confrontation" in the Monday's board meeting of the bank.

"Government is determined to 'capture' RBI in order to gain control over the reserves. The other so-called disagreements are only a smokescreen (sic)," he said on microblogging site Twitter.

 

Chidambaram said, "Nowhere in the world is the central bank a board-managed company. To suggest that private business persons will direct the governor is a preposterous idea."

"November 19 will be a day of reckoning for central bank independence and the Indian economy," he tweeted. The RBI has a massive Rs 9.59 lakh crore reserves and the government, if reports are to be believed, wants the central bank to part with a third of that fund -- an issue which along with easing of norms for weak banks and raising liquidity has brought the two at loggerheads in the recent weeks.

The government on November 9 had said it was discussing an "appropriate" size of capital reserves that the central bank must maintain but denied seeking a massive capital transfer from the RBI. Economic Affairs Secretary Subhash Chandra Garg had also clarified that the government wasn't in any dire needs of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore.

"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he had said.

"The government's FD (fiscal deficit) in FY 2013-14 was 5.1per cent. From 2014-15 onwards, the government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3per cent. The government has actually foregone (Rs) 70,000 crore of budgeted market borrowing this year." Garg said the only proposal "under discussion is to fix appropriate economic capital framework of RBI". Economic capital framework refers to the risk capital required by the central bank while taking into account different risks.

  

Top Stories

Comment on this article

  • AMAR NATHAL, MANGALORE

    Sun, Nov 18 2018

    Just before elections BJP wants to improve economy is laughable. Demonetization, Rafale is over. Now as the elections approach Ambani money may not be enough, now wants to poke its nose on RBI reserve. No wonder BJP was not there for long time or else we would have produced only chai and pakoda. Our Finance minister speaks without any academic qualification of National or International Finance matters. Only twisted logic with twisted face.

    DisAgree Agree [2] Reply Report Abuse

  • Richard, India

    Sun, Nov 18 2018

    God save our country from the thieves .

    DisAgree Agree [3] Reply Report Abuse

  • Swamy, Mangalore

    Sun, Nov 18 2018

    56" chowkidaar is one among them.

    DisAgree Agree [4] Reply Report Abuse

  • pradeep, mangalore

    Sun, Nov 18 2018

    BJP's funda - that money is our Bapu Ji's Paise (BJP)

    DisAgree Agree [1] Reply Report Abuse

  • geoffrey, hat hill

    Sun, Nov 18 2018

    "As a hangover from pre-independence era we are still honoring people who stop the nation from functioning by Rasta Roko, Bandh, Harthal etc. If at any time, someone organized disruption in this country, there should be no chance for them to become a leader" - Sadguru Jaggi Vasudev.

    DisAgree Agree [1] Reply Report Abuse

  • Vincent Rodrigues, Katapadi/Bangalore

    Sun, Nov 18 2018

    BJP may plan to square up this country if not controlled properly.

    DisAgree Agree [5] Reply Report Abuse

  • Swamy, Mangalore

    Sun, Nov 18 2018

    BJP is anyway damn sure of landslide defeat in 2019 elections. So now BJP master plan is to steal all the money from RBI and leave the country by early part of 2019 and join those who have already fled the country. 56" Chowkidaar will be Bagodadaar in 2019.

    DisAgree Agree [12] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Nov 18 2018

    Let everyone get the Promised Rs. 15 Lacks but please ensure Ambani, Adani & Ramdev get nothing ...

    DisAgree Agree [4] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Sun, Nov 18 2018

    Due to badly implemented GST & un-thinkable DEMONITISATION.., and slowing economy, agrarian crisis..., poor rural demand & their low purchasing power, absence of foreign investment, Stressed assets/advances of Banking sector, un-employment etc., were resulted in Govt revenue come down drastically.., Now targeting/eyeing the nations treasury RBI..., to loot money..!!!!
    Nitin Gadkari's projects were stalled & probably govt wants the crony'corporate's engaged in infra projects to be get paid before 2019 election by the govt., as they were not sure of coming back to power...,

    Let us wait & see... what happens.,

    DisAgree Agree [17] Reply Report Abuse

  • Sahil, Mangaluru

    Sun, Nov 18 2018

    So final attempt to make RBI vessel empty. But chidambaram regret he was able to loot just pea nuts limited to less than 20 cr when figures enlighten from present government deffinately chidambaram had sleepless night.very well planned section of urjit Patel as as a RBI governor.

    DisAgree [2] Agree [11] Reply Report Abuse


Leave a Comment

Title: Govt determined to 'capture' RBI's Rs 9 lakh crore reserves: P Chidambaram



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.