Saturday, April 17, 2021

Why is Centre mounting pressure on RBI, asks Chidambaram

NEW DELHI, November 11: What is the “tearing hurry” to fix the capital framework of Reserve Bank of India (RBI) when the ruling dispensation has just four months to complete the term, former Union finance minister P Chidambaram today asked the Centre.
In a series of tweets, the senior Congress leader slammed the government for allegedly seeking funds from the RBI despite claiming that its (Centre’s) fiscal math was correct.
Chidambaram said if the government does not need any more money this financial year, why is it “mounting pressure” on the central bank in the last four months of its tenure.
“Why did it keep silent for 4 years and 6 months?” he said.
The Congress leader said the government has claimed that its “fiscal math is correct” and “boasts” that it had given up Rs. 70,000 crore of borrowing for 2018-19. “If so, why does it need money from the reserves of RBI this year?” he said.
The central government on Friday said it is discussing an “appropriate” size of capital reserves that the central bank must maintain, but denied seeking a massive capital transfer from the RBI. (PTI)