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.

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

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

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

â€œThese reserves are meant to be used during periods of stress and not for meeting normal needsâ€,Â The Time of India sources quoted Patel telling the finance standing committee.

The governorâ€™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.

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

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