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RBI can transfer Rs 1 trillion of excess reserves to government : Report
Why is it in the news ?
- As per a report, the Reserve Bank has "more than adequate" reserves and that it can transfer over Rs 1 trillion to the government after a specially constituted panel identifies the excess capital.
More in the news
- An RBI board meeting had last Monday decided to form a committee, which is likely to be announced later this week.
- The brokerage report said as per its stress tests, the central bank can transfer Rs 1 trillion to the government if the transfer is limited to passing excess contingency reserve.
- And it can go up to Rs 3 trillion if the total capital is included.
- Rs 1.05 trillion can be transferred if the contingency reserve is capped at 3.5 percent of the RBI book.
- This level will be 75 percent higher than the average of BRICS economies, excluding India.
Source
The Hindu.