Does the surplus amount of RBI help the Modi Government in the economic slowdown?
Tuesday - August 27, 2019 2:25 pm ,
Category : WTN SPECIAL
Surplus amount received from the RBI to prove to be 'helpful' for the Modi Government
Surplus amount from RBI can prove to be 'Sanjeevani' for the country's economy!
AUG 27 (WTN) - The worldwide economic slowdown has 'knocked'. Countries of the world, including America, the world's largest economy, are gradually coming under the 'circumstances' of the economic recession. India is also not untouched by the effects of the economic recession. The 'effects' of the recession have started appearing in India, the world's seventh largest economy. The slowdown everywhere from the auto sector to the textile sector is having a 'negative' impact on business.
Faced with the economic slowdown, the Modi Government has also started taking measures to deal with it. In the meantime, the Modi Government has received a major 'economic relief' from the Reserve Bank of India. But the big question is whether this relief will help the Modi Government in dealing with the global recession? But on this relief from the Reserve Bank, politics in India has also intensified. What is the whole matter? Let us tell you in detail.
The Reserve Bank of India has decided to provide assistance of Rs 1.76 lakh crore to the Government of India. In fact, the Reserve Bank has approved the suggestions of the Bimal Jalan Committee. For your information, let you know that the committee headed by former Governor of Reserve Bank of India Bimal Jalan in its report had 'supported' the transfer of Surplus Cash Reserve of Reserve Bank of India to the Indian Government. The committee had suggested that surplus cash reserves should be used to 'help' the Government. Following the recommendation of the Bimal Jalan Committee, the Reserve Bank of India has agreed to give 28 per cent of its total reserve cash to the 'help' of the Central Government.
The Reserve Bank of India has approved transfer of Rs 1,76,051 crore to the Government of India. The Reserve Bank has approved surplus transfers, which will total Rs 1,23,414 crore. Explain that the Reserve Bank of India has a reserve of Rs 9.2 lakh crore, including a contingency fund, currency and gold valuation account, which is 25 percent of the total balance sheet size of the Reserve Bank. The Reserve Bank of India will transfer its surplus amount in a phased manner to the Government in 3 to 5 years.
But the big question is that what will be the benefit to the Government from the surplus amount of the Reserve Bank? So for your information, let you know that the Government is going to get a lot of 'relief' from this amount. For your information, let you know that since demonetization had occurred, the public sector banks in the country are going through cash crisis, due to which they do not have enough capital.
Nearly half a dozen weak banks in the public sector of the country have been brought under the Rapid Reform Action Framework of the Reserve Bank. The country's finance minister Nirmala Sitharaman had announced last week that public banks would be given a capital of Rs 70,000 crore, though banks are said to have 'need' for even more capital. In such a situation, the surplus amount received from the Reserve Bank can be used by the Government to give more capital to the banks. This will reduce the pressure on banks in the coming five years.
The Modi Government, which has won a tremendous majority in the Lok Sabha Election, has set an ambitious target of spending Rs 100 lakh crore on infrastructure in the coming five years. It is being said that a large part of the surplus amount received from the Reserve Bank can be spent by the Modi Government for infrastructure development.
Under the concept of welfare state, the Government runs many schemes for the welfare of farmers, poor and small entrepreneurs, whose burden ultimately has to face by the banks. Banks complain that even after spending on welfare schemes, they do not get any funding from the Government Agencies. In such a situation, the surplus amount received from the Reserve Bank can be used by the Modi Government to increase the capital of agencies like National Housing Bank (NHB), SIDBI and NABARD.
It has been seen that the process of borrowing or taking loans from the Government has been increasing for the last several years. For the financial year 2019-20, the Government is planning to borrow about Rs 7 lakh crore. In such a situation, the Government can use the surplus amount received from the Reserve Bank to reduce its borrowings.
Here, after the recommendations of the Bimal Jalan Committee, politics has also started on the surplus amount of Rs 1.76 lakh crore received from the Reserve Bank to the Modi Government. Former Congress president Rahul Gandhi has targeted the Modi Government, alleging that they are clueless to end the economic crisis that the Prime Minister and Finance Minister have created. Targeting sarcasm at the Modi Government, Rahul Gandhi said, "Stealing from RBI won't work, it's like stealing a Band-Aid from the dispensary & sticking it on a gunshot wound.”
The Congress alleges that RBI's contingency reserves are used in times of extreme financial emergency and war-like situations. But RBI's contingency reserve is being used by the Modi Government to curb its mess on the economic front. The Congress alleges that the Modi Government has reduced the credibility of the Reserve Bank of India.
The surplus amount money to be received by the Modi Government in a phased manner from the Reserve Bank amidst all the opposition's allegations and the global economic slowdown will prove to be a huge relief. This amount can be used by the Government to improve the condition of the banks, spend on infrastructure, raise funds for welfare schemes and repay their debts. It can be said that for the Modi Government facing global economic slowdown, the surplus amount received from the Reserve Bank will prove to be a great support for the country's economy.
AUG 27 (WTN) - The worldwide economic slowdown has 'knocked'. Countries of the world, including America, the world's largest economy, are gradually coming under the 'circumstances' of the economic recession. India is also not untouched by the effects of the economic recession. The 'effects' of the recession have started appearing in India, the world's seventh largest economy. The slowdown everywhere from the auto sector to the textile sector is having a 'negative' impact on business.
Faced with the economic slowdown, the Modi Government has also started taking measures to deal with it. In the meantime, the Modi Government has received a major 'economic relief' from the Reserve Bank of India. But the big question is whether this relief will help the Modi Government in dealing with the global recession? But on this relief from the Reserve Bank, politics in India has also intensified. What is the whole matter? Let us tell you in detail.
The Reserve Bank of India has decided to provide assistance of Rs 1.76 lakh crore to the Government of India. In fact, the Reserve Bank has approved the suggestions of the Bimal Jalan Committee. For your information, let you know that the committee headed by former Governor of Reserve Bank of India Bimal Jalan in its report had 'supported' the transfer of Surplus Cash Reserve of Reserve Bank of India to the Indian Government. The committee had suggested that surplus cash reserves should be used to 'help' the Government. Following the recommendation of the Bimal Jalan Committee, the Reserve Bank of India has agreed to give 28 per cent of its total reserve cash to the 'help' of the Central Government.
The Reserve Bank of India has approved transfer of Rs 1,76,051 crore to the Government of India. The Reserve Bank has approved surplus transfers, which will total Rs 1,23,414 crore. Explain that the Reserve Bank of India has a reserve of Rs 9.2 lakh crore, including a contingency fund, currency and gold valuation account, which is 25 percent of the total balance sheet size of the Reserve Bank. The Reserve Bank of India will transfer its surplus amount in a phased manner to the Government in 3 to 5 years.
But the big question is that what will be the benefit to the Government from the surplus amount of the Reserve Bank? So for your information, let you know that the Government is going to get a lot of 'relief' from this amount. For your information, let you know that since demonetization had occurred, the public sector banks in the country are going through cash crisis, due to which they do not have enough capital.
Nearly half a dozen weak banks in the public sector of the country have been brought under the Rapid Reform Action Framework of the Reserve Bank. The country's finance minister Nirmala Sitharaman had announced last week that public banks would be given a capital of Rs 70,000 crore, though banks are said to have 'need' for even more capital. In such a situation, the surplus amount received from the Reserve Bank can be used by the Government to give more capital to the banks. This will reduce the pressure on banks in the coming five years.
The Modi Government, which has won a tremendous majority in the Lok Sabha Election, has set an ambitious target of spending Rs 100 lakh crore on infrastructure in the coming five years. It is being said that a large part of the surplus amount received from the Reserve Bank can be spent by the Modi Government for infrastructure development.
Under the concept of welfare state, the Government runs many schemes for the welfare of farmers, poor and small entrepreneurs, whose burden ultimately has to face by the banks. Banks complain that even after spending on welfare schemes, they do not get any funding from the Government Agencies. In such a situation, the surplus amount received from the Reserve Bank can be used by the Modi Government to increase the capital of agencies like National Housing Bank (NHB), SIDBI and NABARD.
It has been seen that the process of borrowing or taking loans from the Government has been increasing for the last several years. For the financial year 2019-20, the Government is planning to borrow about Rs 7 lakh crore. In such a situation, the Government can use the surplus amount received from the Reserve Bank to reduce its borrowings.
Here, after the recommendations of the Bimal Jalan Committee, politics has also started on the surplus amount of Rs 1.76 lakh crore received from the Reserve Bank to the Modi Government. Former Congress president Rahul Gandhi has targeted the Modi Government, alleging that they are clueless to end the economic crisis that the Prime Minister and Finance Minister have created. Targeting sarcasm at the Modi Government, Rahul Gandhi said, "Stealing from RBI won't work, it's like stealing a Band-Aid from the dispensary & sticking it on a gunshot wound.”
The Congress alleges that RBI's contingency reserves are used in times of extreme financial emergency and war-like situations. But RBI's contingency reserve is being used by the Modi Government to curb its mess on the economic front. The Congress alleges that the Modi Government has reduced the credibility of the Reserve Bank of India.
The surplus amount money to be received by the Modi Government in a phased manner from the Reserve Bank amidst all the opposition's allegations and the global economic slowdown will prove to be a huge relief. This amount can be used by the Government to improve the condition of the banks, spend on infrastructure, raise funds for welfare schemes and repay their debts. It can be said that for the Modi Government facing global economic slowdown, the surplus amount received from the Reserve Bank will prove to be a great support for the country's economy.
