RBI Dispute: Former RBI Governor Duvvuri Subbarao spoke out against raiding the surplus of the central bank: Former Governor of Reserve Bank of India (RBI) D. Subbarao has launched a major attack on the Modi government at the Center. The former governor said on Friday that the government’s interference in the balance sheet of the Reserve Bank is not a good thing. He said that attempts to grab the surplus of the central bank reveal the frustration of the government.
Subbarao warned while saying that there is a need to be aware of the value of surplus reserves of RBI. However, in the matter of collecting money by issuing government bonds in foreign markets, Subbarao said that if the Government bonds are issued to measure the depth of the market, then it is not difficult, but to raise money regularly from the foreign exchange market. Need to be careful.
CFA Society India
Subbarao was speaking at an event of CFA Society India. Subbarao said that if there is a government anywhere in the world that wants to grab the central bank’s balance sheet, then it is not the right thing. This shows that the government is very concerned about this treasure. ‘
Subbarao while defending his opposition to the government’s efforts to take part in the Sarpulas of the central bank said that the risks of the Reserve Bank are different from other central banks. It will not be completely beneficial to follow international traditions and rules completely.
Former Governor of RBI on RBI Dispute
The comment of the former governor of RBI came at a time when it is said that Bimal Jalan Committee is in the final stages of preparing its report. The Committee is preparing the report about identifying the adequate capital of the Reserve Bank and the manner in which the additional amount is transferred to the government.
The tussle between the government and the Reserve Bank over the surplus of the central bank has been cited as one of the main reasons for the resignation of former RBI governor Urjit Patel. Subbarao said that international investors look at the balance sheets of both the government and the central bank. The International Monetary Fund also follows the same approach to lending in times of crisis.