INSUBCONTINENT EXCLUSIVE:
view of wider and long-term implications of the recommendations, irreversibility thereof" .The panel, chaired by former RBI governor Bimal
Jalan, submitted to the RBI on Friday the Economic Capital Framework (ECF) report, which states how much reserves the RBI should retain and
also the dividend payment to the government."The RBI is the lender of the last resort for the banking sector
Weakening its finances might prove costly during financial/economic crisis or any global turbulence
Since the government has a gaping budget deficit and its sovereign credit rating poor, the risk is heightened", the association said in a
statement.The union also pointed to a study of balance sheets of 47 central banks belonging to both advanced and emerging economies by the
union, compared with other central banks (taking into account the value at risk) the core capital of the RBI is not sufficient.Stating that
it was not doubting the competence, erudition and acumen of the committee, the union said, in view of the wider and long-term implications
of the recommendations, their ramifications on the national economy, both short and long-term, a larger consensus on this vital issue be
evolved and opinion of experts, like former RBI governors like C Rangarajan, YV Reddy, D Subba Rao and Raghuram Rajan, and others be
The RBI and the government may try for a national consensus", the association said.Get Breaking news, live coverage, and Latest News from
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