Govt wants RBI to part with surplus reserves

Govt wants RBI to part with surplus reserves

The government is asking the RBI to hand over a part of its surplus reserves for better utilisation, an official told reporters in New Delhi. The matter is expected to be taken up for discussion again at RBI’s next likely meeting on November 19. Most central banks around the world keep 13% to 14% of their assets as reserves, as compared with the RBI’s 27%. Last year, the RBI paid an additional Rs 10,000 crore as interim dividend, an idea opposed by Governor Urjit Patel as he ought to strengthen the central bank’s balance sheet to prepare for contingencies. The government is also pushing the RBI to ease the stringent capital adequacy norms and bring them in line with the global standards. 

Read More at Livemint News date : 9 Nov 2018, Friday

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