miércoles, 3 de julio de 2019

The Bank’s reserves | The Indian Express

Written by Sonal Varma, Aurodeep Nandi |Published: July 3, 2019 2:01:26 am

Sonal Varma is chief economist (India and Asia ex-Japan) and India economist, respectively, for Nomura

Aurodeep Nandi is chief economist (India and Asia ex-Japan) and India economist, respectively, for Nomura

The Bank’s reserves

Discourse on RBI’s capital shows it is becoming sensitive to growth concerns.

budget, budget 2019, budget 2019 date, Reserve Bank of India, RBI, non-banking finance companies, Nirmala sitharaman, budget 2019 news — According to those in favour of defending the RBI’s reserves, the government’s excessive reliance on them for bridging short-term fiscal slippage may prove to be myopic. (Express Photo by Pradip Das)

Markets have turned a tad Shakespearean about the eventual outcome of the Bimal Jalan-led committee on the RBI’s excess reserves — to be, or not to be, that is the question. Is it to be that the committee will award a fiscal bonanza to the government? Or will the committee advocate no actual transfer to government coffers, and instead ask for the excess funds to retire public debt on the RBI’s balance sheet? Or will it radically declare that there are no excess reserves to discuss whatsoever?