Is the Reserve Bank of India 'helpless' ahead of the Modi Government?
Tuesday - February 19, 2019 11:35 am ,
Category : WTN SPECIAL
Autonomy fight between the Modi Government and the RBI!
Banks class: RBI to discuss with the banks to give the benefits of increased repo rate to the public
FEB 19 (WTN) - Has the Modi government been able to put pressure on RBI? We are saying that because these discussions are common after the RBI’s guidance to the banks to give 'benefit' of increased repo rates to the common people and after giving record interim dividend to the government in the financial year. RBI is going to take the 'class' of all the banks on February 21. By taking the class, we mean that after decreasing the repo rate by the RBI, the central bank of India is going to meet with the public and private bank chiefs to convince them to give the benefit of decreased repo rate to the general public.Regarding this, RBI governor Shaktikant Das has argued that it is important that the advantage of monetary policy decisions should be given to the loaners.
The RBI governor says, "It is very important to give the full benefit of the reduction in the interest rates to the customers after deducting the repo rate. This is even more important after the declaration of the central bank's policy rate. For your information, let you know that at the beginning of this month, the RBI reduced the repo rate to 0.25 per cent to 6.25 per cent.
It is being said that keeping in view the general elections, there is ‘indirect pressure’ on the RBI that the rates of loan should be reduced, which will benefit the common people who take the loan. With the reduction in the repo rate, the EMI will be reduced and the government expects that the loan will be cheaper, which the government can get the benefit of.
Here, the Reserve Bank of India has decided to give 28,000 crore rupees as interim dividend to the Central Government. This decision was taken at the meeting of the Central Board of Directors of the RBI. For your information, let you know that this is the second consecutive year, when the Reserve Bank of India has transferred large amount to the government in the form of interim surplus.
From time to time, the news of the Central Government being pressurized to transfer interim dividend to the RBI was discussion in the media. It was being said that the finance ministry was demanding Rs 28,000 crore as interim dividend from the RBI. For your information, let you know that in this financial year, the RBI has so far given interim dividend of Rs 40,000 crore to the Central Government. Now after giving 28,000 crore rupees as interim dividend, the government will get a total of 68,000 crore rupees from the RBI in the current financial year.
For your information, let you know that in any financial year, the RBI has not given such a huge dividend to the government. Earlier, in the year 2016, the RBI had given an interim dividend of Rs 65,896 crore to the government. The government had demanded the surplus retained in the last two years from the Reserve Bank with Interim Surplus. This was one of the issues that had been 'confronted' between previous RBI governor Urjit Patel and the government.
It can be said that the Modi Government has got ‘successes’ in convincing the RBI. The way the dispute was going on between the Central Government and the central bank regarding the autonomy of the RBI, it is said that angry with that, Urjit Patel resigned from the post of Governor of the Reserve Bank. Now the advice of the RBI to the banks to give the benefits of the repo rate to the customers and after giving record interim dividend to the Central Government, it can be said clearly that the Modi government is dominating on the RBI.
FEB 19 (WTN) - Has the Modi government been able to put pressure on RBI? We are saying that because these discussions are common after the RBI’s guidance to the banks to give 'benefit' of increased repo rates to the common people and after giving record interim dividend to the government in the financial year. RBI is going to take the 'class' of all the banks on February 21. By taking the class, we mean that after decreasing the repo rate by the RBI, the central bank of India is going to meet with the public and private bank chiefs to convince them to give the benefit of decreased repo rate to the general public.Regarding this, RBI governor Shaktikant Das has argued that it is important that the advantage of monetary policy decisions should be given to the loaners.
The RBI governor says, "It is very important to give the full benefit of the reduction in the interest rates to the customers after deducting the repo rate. This is even more important after the declaration of the central bank's policy rate. For your information, let you know that at the beginning of this month, the RBI reduced the repo rate to 0.25 per cent to 6.25 per cent.
It is being said that keeping in view the general elections, there is ‘indirect pressure’ on the RBI that the rates of loan should be reduced, which will benefit the common people who take the loan. With the reduction in the repo rate, the EMI will be reduced and the government expects that the loan will be cheaper, which the government can get the benefit of.
Here, the Reserve Bank of India has decided to give 28,000 crore rupees as interim dividend to the Central Government. This decision was taken at the meeting of the Central Board of Directors of the RBI. For your information, let you know that this is the second consecutive year, when the Reserve Bank of India has transferred large amount to the government in the form of interim surplus.
From time to time, the news of the Central Government being pressurized to transfer interim dividend to the RBI was discussion in the media. It was being said that the finance ministry was demanding Rs 28,000 crore as interim dividend from the RBI. For your information, let you know that in this financial year, the RBI has so far given interim dividend of Rs 40,000 crore to the Central Government. Now after giving 28,000 crore rupees as interim dividend, the government will get a total of 68,000 crore rupees from the RBI in the current financial year.
For your information, let you know that in any financial year, the RBI has not given such a huge dividend to the government. Earlier, in the year 2016, the RBI had given an interim dividend of Rs 65,896 crore to the government. The government had demanded the surplus retained in the last two years from the Reserve Bank with Interim Surplus. This was one of the issues that had been 'confronted' between previous RBI governor Urjit Patel and the government.
It can be said that the Modi Government has got ‘successes’ in convincing the RBI. The way the dispute was going on between the Central Government and the central bank regarding the autonomy of the RBI, it is said that angry with that, Urjit Patel resigned from the post of Governor of the Reserve Bank. Now the advice of the RBI to the banks to give the benefits of the repo rate to the customers and after giving record interim dividend to the Central Government, it can be said clearly that the Modi government is dominating on the RBI.
