Chidambaram asks what's government's 'tearing hurry' to 'fix' RBI capital-framework
Former Union Finance Minister P Chidambaram today asked the Center what was its "tearing hurry" to "fix" the capital framework of Reserve Bank of India when the ruling dispensation had just four months to complete the term. In a series of tweets, the Congress leader slammed the government for allegedly seeking funds from RBI despite claiming that its (Center's) fiscal math was correct.
Chidambaram makes blistering attack against Center
'Why is Center pressurizing RBI in last 4-months?' asks Chidambaram
Center said it was discussing 'appropriate' size of RBI capital-reserves
The Central government had on Friday 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. 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.
Economic Affairs Secretary quashes speculation of government asking for funds
Economic Affairs Secretary Subhash Chandra Garg clarified the government wasn't in any dire need of funds and that there was no proposal to ask the RBI to transfer Rs. 3.6 lakh crore. He said the only proposal under discussion was to "fix appropriate economic capital-framework of RBI". Economic capital framework refers to the risk capital required by RBI while taking into account different risks.
