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Govt to ‘continue pressing’ RBI to transfer reserve

November 07, 2018 07:51 AM

COURTESY THE TRIUBNE NOV 7

Govt to ‘continue pressing’ RBI to transfer reserve
New Delhi, November 6

Keeping up the heat on the Reserve Bank of India, the government will continue to press the bank to relax norms to boost lending and transfer at least a third of its Rs 9.6 lakh crore reserve, sources familiar with the discussions said.

In recent weeks, the rift between the RBI and the government has been widening over various issues.

Citing Section 7 of the RBI Act — an unprecedented move in the 80-year history of RBI — the government wants RBI Governor Urjit Patel to address three prime concerns.
They pertain to transfer of surplus funds, easing of NPA norms to kickstart lending and support growth, and easing liquidity crisis facing non-banking finance companies (NBFCs), sources said. These issues may figure during the RBI’s board meeting on November 19

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