New Delhi,
\nThe 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.<\/p>\n
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.<\/p>\n
The government had budgeted for a Rs 58,000 crore dividend from the RBI in its Budget for this fiscal year.<\/p>\n
\u201cThere 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\u2019s what the government has suggested the Reserve Bank to transfer,\u201d Garg told PTI.<\/p>\n
RBI\u2019s 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.<\/p>\n
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).<\/p>\n
Asked about the contours of the recap bonds, Garg said \u201cthe 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\u201d.<\/p>\n
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.<\/p>\n
Credit rating agency Moody\u2019s had last week upgraded India\u2019s 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.<\/p>\n
Garg said Moody\u2019s has acknowledged the reform process and believes that India is in a position to control its debt and put its banking sector in order.<\/p>\n
\u201cThe kind and quality of reforms, the boldness of reforms, the structural, fundamental needs of reform is what has persuaded them to believe that India is now on a longer term high growth path …That (reform) process will continue and I don\u2019t see any slackening in reform effort,\u201d he said.<\/p>\n
The US-based rating agency cited government efforts to reduce corruption, formalise economic activity and improve tax collection and administration, including through demonetisation and GST, as well as improvements to the monetary policy framework and measures to clean up non- performing loans as reform steps which would foster sustained economic growth.<\/p>\n
On privatisation of Air India, Garg said it is progressing \u201creasonably steadily\u201d and the plan about how to privatise has also been broadly worked out.<\/p>\n
Asked if it would happen in the current fiscal, Garg said, \u201cI won\u2019t put a timeline on when this is likely. Air India is not just one company, there are other assets.\u201d The government has \u2018in-principle\u2019 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.<\/p>\n","protected":false},"excerpt":{"rendered":"
New 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. […]<\/p>\n","protected":false},"author":1,"featured_media":10599,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[312],"tags":[],"class_list":["post-10598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/10598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=10598"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/10598\/revisions"}],"predecessor-version":[{"id":10600,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/10598\/revisions\/10600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/10599"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=10598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=10598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=10598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}