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RBI to transfer Rs 1.76 lakh crore to the Union Government

Updated: Aug 27, 2019 08:22:46am
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RBI to transfer Rs 1.76 lakh crore to the Union Government

New Delhi, Aug 27 (KNN) Recently, in a fresh move, Reserve Bank of India (RBI) has accepted the recommendations of Bimal Jalan Panel to transfer a sum of Rs 1.76 lakh crore to the Union government. This amount will be credited to the Union government’s books of accounts today, just a day after the approval of the Bimal Jalan panel’s recommendations by the Bank’s Central Board.

The release of RBI mentioned, “RBI central board accepts the recommendations of Bimal Jalan Committee and approves to transfer the sum of amount to the government”, by its release on Monday evening. Transfer of the amount will be a big relief to the Modi government that is looking for funds to push the slowdown of the economy.

“The Committee’s recommendations were based on the consideration of the role of central banks, financial resilience, cross-country practices, statutory provisions and the impact of the RBI’s public policy mandate and operating environment on its balance sheet and the risks involved”, stated the release.

The resilience of the RBI needs to be commensurate with its public policy objectives and must be maintained above the level of peer central banks as would be expected of a central bank of one of the fastest growing large economies of the world added the RBI.

Recent slowdown has hit the economy and various sectors got affected by it. The slowdown has been reported in various sectors, from automobile, food to the MSME sector as well. This transfer of the amount from RBI helps the government to increase the investment without affecting the fiscal deficit target.

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