Economy

Raghuram Rajan says RBI always under 'pressure' to pay more to govt: report

Updated : December 17, 2018 10:57 AM IST

"When I was governor, we paid the highest dividend to the government. But that isn't the issue any more. The government doesn't just want the profit, it wants the excess." Rajan said.

On the bad debt crisis, Rajan told the economy needs to keep cleaning up the bad loans and out of court settlements are required.

Raghuram Rajan says RBI always under 'pressure' to pay more to govt: report

Talking about the controversy between the Reserve Bank of India and the government, former governor Raghuram Rajan said there is always a pressure on the central bank to pay the government more, NDTV reported.

"When I was governor, we paid the highest dividend to the government. But that isn't the issue any more. The government doesn't just want the profit, it wants the excess." Rajan told NDTV in an interview.

On the bad debt crisis, Rajan said the economy needs to keep cleaning up the bad loans and out-of-court settlements are required.

"The bankers should be ready to make concessions and out of court in the shadow of bankruptcy should happen," Rajan said, adding the National Company Law Tribunal (NCLT) should focus on the big cases.

"I'm unaware of where those cases stand. It had a list of the largest frauds. The reason I'm worried is if one gets away with immunity then others may follow," Raghuram Rajan said.

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