Economy

Urjit Patel says necessary for RBI to keep its current reserves: report

Updated : November 28, 2018 08:36 AM IST

“These reserves are meant to be used during periods of stress and not for meeting normal needs”, the paper's sources quoted RBI governor Urjit Patel.

The remark indicates that the centre is not likely to receive higher cash transfers soon, the report said.

The reserves held by the Reserve Bank of India are necessary in view of global volatility and in order to maintain high creditworthiness, the central bank governor Urjit Patel told the parliamentary panel on Tuesday, as per a Times of India report.

The remark indicates that the centre is not likely to receive higher cash transfers soon, the report said.

“These reserves are meant to be used during periods of stress and not for meeting normal needs”, The Time of India sources quoted Patel telling the finance standing committee.

The governor’s comments to the committee are significant as the issue of the level of reserves to be maintained was one of the major flashpoints in a bitter battle between the central bank and the government.

According to the report, the central bank asserted that a major part of the reserves, around Rs 9.7 lakh crore or 28 percent of assets, exist and should not be disturbed.

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.

Urjit Patel says necessary for RBI to keep its current reserves: report

You May Also Like

SIP calculator: Here's how much you should invest to earn Rs 1 crore?

Closing Bell: Sensex, Nifty end lower dragged by financials; settle the week 1.5% higher

Pharma sector Q1 preview: Brokerages expect a weak quarter, list top picks

Trending on CNBC-TV18

recommended for you