28.4 C
New Delhi
Sunday 20 October 2019
Economy Govt seeks Rs 13,000 crore surplus from RBI

Govt seeks Rs 13,000 crore surplus from RBI

-

- Advertisment -

Delhi: The government has not asked the Reserve Bank to pay any special dividend and is only seeking Rs 13,000 crore of surplus lying with the central bank, Economic Affairs Secretary Subhash Chandra Garg has said.

In August, the RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017. It was less than half the Rs 65,876 crore it had paid in 2015-16.

The government had budgeted for a Rs 58,000 crore dividend from the RBI in its Budget for this fiscal year.

“There is no proposal at this stage to ask for any special dividend. What is being discussed is to only ask for what the RBI earned this year but did not distribute. That is about Rs 13,000 crore. That’s what the government has suggested the Reserve Bank to transfer,” Garg said.

RBI’s profit was about Rs 44,000 crore, of which Rs 30,000 crore has been distributed and Rs 13,000 crore it retained towards risks and reserves. So the government has made a suggestion that the Rs 13,000 crore may also be transferred, he said.

The government had last month announced an unprecedented Rs 2.11 lakh crore capital infusion in PSU banks, which are grappling with high non-performing assets (NPAs).

Asked about the contours of the recap bonds, Garg said “the recapitalisation package is in the final stages. The Department of Financial Services is working on it and soon we would see all these aspects being addressed”.

Of the Rs 2.11 lakh crore, Rs 1.35 lakh crore would be infused through recapitalisation bonds and the remaining Rs 76,000 crore through budgetary support and banks diluting equity in capital market.

Credit rating agency Moody’s had last week upgraded India’s sovereign rating after a gap of over 13 years citing reform push and steps being taken by the government to solve the high NPA problems in the banking sector.

Bad loans in the sector have neared Rs 10 lakh crore.

Garg said Moody’s has acknowledged the reform process and believes that India is in a position to control its debt and put its banking sector in order.

On privatisation of Air India, Garg said it is progressing “reasonably steadily” and the plan about how to privatise has also been broadly worked out.

Asked if it would happen in the current fiscal, Garg said, “I won’t put a timeline on when this is likely. Air India is not just one company, there are other assets.”

The government has ‘in-principle’ decided to disinvest the Air India group as a whole or its constituents fully or part thereof through the strategic sale with transfer of management control.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply

Opinion

Karva Chauth: Faith, legend behind viewing the moon through a sieve

The legend and Karva Chauth rituals vary across Rajasthan, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Haryana, Punjab, Delhi and, in south India, Andhra Pradesh

Pakistan-Occupied Kashmir, Here We Come!

Study Wuhan and Mamallapuram in the backdrop of the fact that things are not quite working out in China-Pakistan economic relations, notwithstanding the urge of the communist state to contain India and that of the Islamic state to challenge it

Slowdown Has Reasons Other Than GST, Demonetisation

When all economic sectors decline, the mood of the market turns sombre, turning investors all the more reluctant to pump in money; the interdependence of industries means that the slowdown suffered by one would affect many

Where China & India, Resisting & Improving Democracy, Meet

What you see in Hong Kong is China resisting democracy; what you see in Kashmir is India promoting it; a reasonably capitalist China does not offer freedom politically but India, held back at times by the choice of the people, is still opening up; there could be a point of convergence as the two nations move in opposite directions

Omega-3: Study published in BMJ claiming no benefit for type 2 diabetes has myopic vision

Most respondents in the omega-3 study published in the BMJ are from Europe and North America; such results can hardly be applied worldwide
- Advertisement -

Elsewhere

Qureshi: Manmohan Singh welcome as ordinary pilgrim

Pakistan Foreign Minister Shah Mehmood Qureshi claims former Indian Prime Minister Manmohan Singh had himself expressed a desire to visit Kartarpur as an ordinary pilgrim

Mosquitoes of Delhi scared Mughals and Brits, too

While books written in Persian in the era of Akbar talk of floral extracts' use as mosquito repellants, the Brits found the Mughal Red Fort uninhabitable because of the menace of the same pests

PIL before Ayodhya verdict to scrap Act on places of worship

Hindus would hardly complain that their faith is held ransom to legality as the PIL challenges their right to question some historical wrongs

Indrani Mukerjea claims to have bribed Chidambarams with $ 50,00,000

When Indrani and Peter Mukerjea approached Chidambaram for FIPB approval for FDI in INX Media, the then finance minister had allegedly sought the bribe

‘Moulding of relief’ affidavits for Ayodhya filed in Supreme Court

Know the provision of moulding of relief given to all parties to the dispute when they have argued their respective cases but the verdict is as yet reserved

You might also likeRELATED
Recommended to you

%d bloggers like this: