[So, what the tussle with the RBI Governor was/is all about!!!?
Why use the nuclear option?

And, what are these: <
https://indianexpress.com/article/india/govt-wants-rs-3-6-lakh-crore-from-rbi-a-third-of-its-reserves-central-bank-says-no-5435504/>,
<
https://www.thehindubusinessline.com/money-and-banking/govt-to-continue-pressing-rbi-for-relaxing-norms-funds/article25434870.ece>,
<
https://www.zeebiz.com/india/news-rs-36-lakh-crore-demand-slapped-on-rbi-as-centre-wants-one-third-of-reserves-the-rift-intensifies-but-is-it-wise-70452>,
<
https://www.businesstoday.in/sectors/banks/finmin-rbi-fight-over-rs-3-6-lakh-surplus-from-the-regulators-reserves/story/288698.html>,
<
https://m.timesofindia.com/india/government-seeking-to-demolish-rbi-rs-3-6-lakh-crore-demand-is-for-doling-out-pre-poll-freebies-congress/amp_articleshow/66527004.cms
>???

***The real issue, now, is that whether the government has changed its mind
to step back, at least partially, faced with adverse opinions all around -
from influential quarters, in particular, or it's all smoke and mirrors?***

Let's see what happens on 19th?

Evidently, the extra fund would have had funded doling out of largesse,
pre-poll.
As the demonetisation has brought out, Modi is ready to inflict serious
damage on the national economy in the hunt for partisan (uncertain)
political gains.

Now, that looks a tad or two trickier.

One thing is, however, certain that the regime has turned desperate, behind
the facade of apparent bravado.]

https://www.hindustantimes.com/india-news/government-s-fiscal-math-on-track-don-t-need-cash-from-rbi-finance-ministry/story-8nLjjSyxQ4hUvLYZKf1tHO.html?fbclid=IwAR3JzNlPSMdnGvSE_0eqrVHxjRwNCaQesGdL92e356LykOPalCvvNO6iQLM

Government’s fiscal math on track, don’t need cash from RBI: Finance
ministry
Economic affairs secretary in the finance ministry Subhash Chandra Garg
tweeted amid Opposition allegations that government wants RBI to transfer
money to it.

INDIA Updated: Nov 09, 2018 14:55 IST

HT Correspondent
Hindustan Times, New Delhi

The government has denied there was any proposal to ask the RBI to transfer
its surplus reserves.(Mint file photo)

There is no proposal from the government to ask Reserve Bank of India to
transfer its surplus reserves, said Subhash Chandra Garg, economic affairs
secretary in the finance ministry, on Friday amid Opposition charge that
the Centre had demanded Rs 1 lakh crore from the bank.

“Lot of misinformed speculation is going around in media. Government’s
fiscal math is completely on track. There is no proposal to ask RBI to
transfer 3.6 lakh crore or 1 lakh crore, as speculated,” he tweeted.

Garg added that the only proposal concerning the reserves that the
government was discussing was to fix the appropriate economic capital
framework of the RBI. That framework is used to decide the adequate amount
of reserves the central bank should maintain.

The tweets come a day after senior Congress leader and former finance
minister P Chidambaram accused the Narendra Modi government of trying to
“capture” the RBI to tide over its fiscal crisis, warning that any such
move would be “catastrophic”.

“The government stares at a fiscal deficit crisis... The government wants
to step up the expenditure in an election year. Finding all avenues closed,
in desperation, the government has demanded Rs 1 lakh crore from the
reserves of RBI,” the former finance minister said at a press conference in
Kolkata on Thursday.

Dismissing talk of fiscal deficit crisis, Garg said, “Government’s FD in FY
2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in
bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%.
Government has actually foregone 70000 crore of budgeted market borrowing
this year,” he tweeted.

Read more

IMF says monitoring situation in India, bats for RBI’s independence

RBI a seat belt for govt, autonomy must be respected: Raghuram Rajan
The government and the RBI have been clashing on several issues including
the reserves question, and a government proposal to ease the capital and
lending curbs for state-run banks. The rift has widened sharply in the past
few weeks and will be taken up at the RBI’s forthcoming board meeting on
November 19.

(With Reuters inputs)

First Published: Nov 09, 2018 14:30 IST

-- 
Peace Is Doable

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