RBI to transfer Rs52,679 crore surplus profit to government - Moneylife

RBI to transfer Rs52,679 crore surplus profit to government - Moneylife

This
year RBI has chosen to transfer  almost the
entire surplus to government, according to reports. It is also reported that
the gesture to support GOI is persuant to a recommendation made by a panel
headed by one of its directors Y H Malegam.
The pressure on RBI to reduce its reserves and  pass on the proceeds to Consolidated Fund of
India was not new. Immediately, one has no access to the basis on which the
Malegam Panel has certified the adequacy of the central bank’s reserves  for the coming three years. Long back, after
internal assessment, it was decided by RBI to target maintaining reserves at 12
per cent of the size of the balance sheet and till last year that was the
objective.

Practice
so far has been  to give residual surplus
after appropriation to central bank’s reserves. Just as ‘people get the government they deserve’,
GOI and RBI can get the recommendations they ‘need’ from panels. RBI is already
struggling to come out of a situation created by one such report. Yes, the
reference is to the report of the Financial Sector Legislative Reforms
Commission authored by Justice Srikrishna. This is not just a premature, harsh
response to the beginning of the gradual weakening of a central bank’s
financial strength. Lamenting on the fall of RBI’s aggregate reserves from 11.9
per cent of balance sheet size to 10.1 per cent during the five year period
ending June 2013, I had observed asunder:
“To ensure
that temptations of government emanating from external compulsions do not
dilute the strength of RBI’s balance sheet, GOI should take measures to augment
the share capital and reserves of RBI after carrying out appropriate amendment
to RBI Act. Till such time RBI should be allowed to retain surplus income by
transfer to reserves. Considering the size of the balance sheet and the
internal and external pressures on its income generating capabilities, as also
the nature of shocks the bank has to absorb from time to time, the central
bank’s reserves need to be augmented on an ongoing basis.”*
*Page 47,
Banking, Reforms & Corruption: Development Issues in 21st
Century India By M G Warrier(samparkworld@hotmail.com)
M G
Warrier, Mumbai





Comments

Post a Comment

Popular posts from this blog

NAVAGRAHA STOTRAM

NAVAGRAHA STOTRAM* According to astrology, the positions of the nine planets in the twelve constellations of the zodiac and their movements are considered to be quite significant. The nine planets ‘Navagraha’ affect every aspect of human life. They play an important role in the activities, physical and mental health and life of any individual. The unfavorable positioning of any of these planets can be the cause of problems, bad health, and stagnation for many people. However, there is a solution to avoid the ill effects of the position and movement of the ‘Navagraha’ in our lives. Navagraha mantras (or stotram) are simple mantras which work as powerful healing tools to reduce the negative effects of any of the nine planets. These mantras are Hindu holy hymn addressing the nine planets. Benefits Of Navagraha Stotram And The Way to Practice The Navagraha Stotram is written b y Rishi Vyasa and is considered to be the peace mantra for the nine planets. They are powerful m
Read more

THE SUNSET OF THE CENTURY

*SUNSET OF THE CENTURY: Rabindranath Tagore THE LAST SUN OF THE CENTURY SETS AMIDST THE BLOOD-RED COLOURS OF THE WEST AND THE WHIRLWIND OF HATRED. THE NAKED PASSION OF SELF-LOVE OF NATIONS IN ITS DRUNKEN DELIRIUM OF GREED IS DANCING TO THE CLASH OF STEEL AND THE HOWLING VERSES OF VENGEANCE. THE HUNGRY SELF OF THE NATION SHALL BURST IN A VIOLENCE OF FURY FROM ITS OWNSHAMELESS FEEDING FOR IT HAS MADE THE WORLDITS FOOD, AND LICKING IT, CRUNCHING IT AND SWALLOWING IT IN BIG MORSELS, IT SWELLS AND SWELLS TILL IN THE MIDST OF ITS UNHOLY FEAST DESCENDS THE SUDDEN HEAVEN PIERCING ITS HEART OF GROSSNESS…   *Note: “The Sunset of the Century”, translated by the poet, from Naivedya; The English Writings of   Rabindranathtagore, Volume II,Delhi 1996, page 466. Quoted in his article ‘Critiquing nationalism’ by K Satchidanandan (Frontline, November 14, 2014). The article takes you to a much broader spectrum. HAPPY READING(READ MORE STAN
Read more

The King of Ragas: Sankarabharanam

                       The King of Ragas                      --------------------------     Long ago  serpents were put to lot of hardships.They  were afraid of other animals. They had to seek refuge in the hermitage of sage Saraba.The sage was a true devotee of Lord Shiva.He used to pray Shiva with melodious songs. As he sang a particular raga the snakes were much inspired and they began to dance,. Slowly the serpents became friendly with the sage. They brought water in their mouths for the pooja.They secreted  a special fluid in which the flowers got stuck to their bodies.The sage was much astonished by the service of the snakes.As the sarpas became very close to the sage ,they requested him to help having Darsan of Lord Siva. As requested by the sage Shiva appeared in the form of  a  Kapalika and stayed in the ashram.The music and dance of the snakes continued. The snakes rendered service to the kapalika as they considered him  a Shiva bhakta.Shiva was much pleased with t
Read more