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Governors of RBI since 1991; Graphic courtesy: The Times of India

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1 History
2 Reserve Bank of India Act of 1934
- 2.1 What is Section 7 of the Reserve Bank of India Act of 1934
- 2.2 Sec 7 application considered in 2018, Oct
3 Central board of directors
4 How other central banks function
5 The post of Governor
6 Selection of Governor, Dy. Governor
7 Salary and perquisites of RBI governors
- 7.1 2016: Urjit Patel’s package
- 7.2 2017, pay hike: Rs 2.5 lakh/month
8 Governors of the Reserve Bank of India
9 Balance sheet
- 9.1 Where do RBI’s surplus funds come from?
- 9.2 2013-18: surplus transferred
  - 9.2.1 Surplus capital, 2013-18
10 Dividends
11 Gold reserves
- 11.1 Purchases in 2009, 2018
- 11.2 2014-19
12 Government- RBI relations
13 Issues
- 13.1 2016/ Questions Post-Demonetisation
14 Monetary Policy Committee, 2016
15 Policy reviews
16 Reserves
17 See also

History

rbi.org

The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century.

The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

The Bank was constituted to:

Regulate the issue of banknotes

Maintain reserves with a view to securing monetary stability and

To operate the credit and currency system of the country to its advantage.

The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts and public debt. The existing currency offices at Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore and Cawnpore (Kanpur) became branches of the Issue Department. Offices of the Banking Department were established in Calcutta, Bombay, Madras, Delhi and Rangoon.

Burma (Myanmar) seceded from the Indian Union in 1937 but the Reserve Bank continued to act as the Central Bank for Burma till Japanese Occupation of Burma and later upto April, 1947. After the partition of India, the Reserve Bank served as the central bank of Pakistan upto June 1948 when the State Bank of Pakistan commenced operations. The Bank, which was originally set up as a shareholder's bank, was nationalised in 1949.

An interesting feature of the Reserve Bank of India was that at its very inception, the Bank was seen as playing a special role in the context of development, especially Agriculture. When India commenced its plan endeavours, the development role of the Bank came into focus, especially in the sixties when the Reserve Bank, in many ways, pioneered the concept and practise of using finance to catalyse development. The Bank was also instrumental in institutional development and helped set up insitutions like the Deposit Insurance and Credit Guarantee Corporation of India, the Unit Trust of India, the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development, the Discount and Finance House of India etc. to build the financial infrastructure of the country.

With liberalisation, the Bank's focus has shifted back to core central banking functions like Monetary Policy, Bank Supervision and Regulation, and Overseeing the Payments System and onto developing the financial markets.

The Times of India

Which was India's first central bank?

The first central bank was the Imperial Bank of India formed in 1921 by merging the Presidency banks. The bank was further enlarged by the merger of several banks owned by princely states like Jaipur, Mysore and Patiala.

The Imperial Bank of India was supposed to perform three functions -commercial banking, central banking and banker of the government. By 1930, there were 1,258 banking institutions in the country registered under the Companies Act. Of these, the Imperial Bank was the most dominant.The global economy was passing through the Great Depression and this resulted in the failure of many banks in India as well. Various committees set up to study the Indian banking system recommend ed the formation of a central bank which was free from commercial banking. In most modern economies, central banks were formed largely to tackle the failure of unorganised banking by enforcing regulatory safeguards.

When was the Reserve Bank of India formed?

The bank was formed in 1935 by the Reserve Bank of India Act, 1934. The objectives included being the banker of the government and other banks, to maintain the exchange ratio and to regulate issue of bank notes. The overall objective of the bank was to secure monetary stability.

What are its current roles?

The bank formulates, implements and monitors India's monetary policy. It monitors and regulates the financial system through prescribing broad parameters of banking operations to ensure public confidence in the system and protect depositors' interests.The bank also manages foreign trade and monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency .

How is the bank governed?

Like other central banks, the RBI too is an independent entity within the government.It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and not more than four deputy governors as official directors. There are also 10 directors nominated by the government, two government officials and four directors -one each from local boards -who act as non-official directors.

Reserve Bank of India Act of 1934

What is Section 7 of the Reserve Bank of India Act of 1934

Sec 7 of the Reserve Bank of India Act of 1934
From: Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: The Times of India

See graphic:

Sec 7 of the Reserve Bank of India Act of 1934

Sec 7 application considered in 2018, Oct

Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: The Times of India

Is Said To Have Referred To The Law Recently

No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history.

It is seen as an instrument of last resort, a direct order from the government of the day to the central bank to carry out its wishes (see graphic, ‘In Public Interest’).

The Modi government, despite its growing frustration with the Urjit Patel-led RBI, has resisted suggestions that it invoke Section 7 to increase liquidity, ease pressure on banks and businesses, and boost economic growth. But there are indications that via recent communications, it has initiated a consultative process with the RBI in three areas of concern and while doing so, has mentioned Section 7 without actually invoking it.

Was fear of Section 7 behind RBI dy guv’s attack on govt?

The government is learned to have recently initiated a consultative process with the RBI in three areas of concern – power sector loans, ‘prompt corrective action’ (PCA), and special dispensation for micro-small and medium enterprises (MSMEs) – and while doing so, mentioned Section 7, without actually invoking it. The Section says, “The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest.”

The government’s move is significant as such a consultative process could potentially lead to the government issuing directions should the logjam persist. The issue of invoking Section 7 first came up during a hearing before the Allahabad high court in a case filed by the Independent Power Producers challenging the RBI’s February 12 circular which did away with all restructuring schemes for loans in default. After the counsel for RBI pointed out that legally the government could issue directions to the central bank, the court in its ruling in August said such a move could be considered.

Historically, whenever governors have spoken about the independence of the central bank, they have never failed to point out that Section 7 has never been used.

A senior official in the government said there has so far been no move to invoke Section 7. Another person, when asked, said, “Communication between the government and the central bank is sacrosanct and cannot be disclosed.”

There is some speculation that it was the government’s mention of section 7 that was the trigger for deputy governor Viral Acharya’s outburst against the government last Friday. While he did not make any reference to the Section, he did speak about how the government could undermine the independence of the central bank by ‘blocking or opposing rule-based central banking policies and favouring instead discretionary or joint decisionmaking with direct government interventions’.

The government wants norms for non-performing assets in the power sector – which currently require companies to be referred to bankruptcy courts -- to be relaxed. Once admitted, the companies have to be either sold or liquidated.

Its concern about 'prompt corrective action' is that the classification of PCA has placed lending and expansion curbs on 11 public sector and one private bank, which it believes is choking fund flows to several sectors. The government has also been worried about the fate of MSMEs, and is keen that the definition of bad loans be softened.

A broader concern is about the liquidity situation which has taken a turn for the worse after a series of defaults by IL&FS in September. The defaults have had a cascading impact — MFs that had invested in IL&FS debt were hit, corporates who had put shortterm funds in MFs turned cautious, and the funds themselves turned cautious about putting money in financial companies.

Central board of directors

The Central Board

The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.

• Appointed/nominated for a period of four years

Constitution:

o Official Directors

♣ Full-time : Governor and not more than four Deputy Governors

o Non-Official Directors

♣ Nominated by Government: ten Directors from various fields and two government Official

♣ Others: four Directors - one each from four local boards

Functions : General superintendence and direction of the Bank's affairs

The Board, as in 2018

The RBI’s Central board of directors, as in 2018.
From: Sidhartha, December 11, 2018: The Times of India

See graphic:

The RBI’s Central board of directors, as in 2018

Local Boards

• One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi

Membership:

• consist of five members each

• appointed by the Central Government

• for a term of four years

Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.

Why RBI is not comfortable with active boards

Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: The Times of India

Industrialists on RBI Board
From: Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: The Times of India

Bizmen In Rule-Debating Role Raise Conflict Of Interest Issue

An active board seeking a say in bank regulation has thrown up questions about conflict of interest, given the presence of industrialists on the board of the Reserve Bank of India (RBI).

Traditionally, the RBI board had a strong presence of eminent industrialists like Ratan Tata, N R Narayana Murthy and Azim Premji. It has also included chiefs of highly indebted groups like K P Singh of DLF and G M Rao of the GMR Group. However, there was never any conflict of interest as the minutiae of bank regulation or monetary policy never came up to the board. That’s because, until now, the RBI board only gave a broad direction that the central bank should take.

But in the October 23 board meeting, some directors are understood to have turned vocal on a few RBI regulations. According to a senior former central banker, there would be conflict of interest if these businessmen had advance information of RBI’s regulations. He was reacting to reports that some directors wanted the RBI central board to play a more active role and deliberate on regulations. There is talk of the board wanting to push through five decisions, which includes issues such as regulatory forbearance and allowing weak banks to lend, in the forthcoming RBI board meet on November 19.

Sources close to the central bank also point out that, unlike boards constituted under The Companies Act, the RBI Act 1934 grants the governor with powers that are concurrent with the board. They refer to clause 3 of the hotly debated Section 7 of the RBI Act. While the first clause confers powers on the government to give directions to the RBI, the third part indicates that the governor shares power.

This clause 3 states, “Save as otherwise provided in regulations made by the central board, the governor and in his absence the deputy governor nominated by him in this behalf, shall also have powers of general superintendence and direction of the affairs and the business of the bank, and may exercise all powers and do all acts and things which may be exercised or done by the bank.” A source said, “The choice of the words ‘shall also have powers’ indicates that these are concurrent with the board.”

According to sources, the powers of the governor are reiterated in the Reserve Bank of India, General Regulations, 1949, which also addresses the issue of conflict of interest between board decisions and individual interests of directors. “You can imagine what would happen if an issue like the February 12 circular on recognition of non-performing assets came up to a board that included owners of highly indebted companies,” a source said.

How other central banks function

Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: The Times of India

The US government’s frictions with its central bank under President Trump
From: Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: The Times of India

The US Federal Reserve: Like other central banks, the Fed is an independent government agency. It is accountable to the public and the US Congress. Members of the board of governors are appointed for staggered 14-year terms and the board chair is appointed for a four-year term. Elected officials and members of the administration are not allowed to serve on the board. The Fed does not receive funding through the congressional budgetary process. The financial statements of the Federal Reserve Banks and the board of governors are audited annually by an independent, outside auditor.

The Bank of England (BoE): The BoE is owned by the UK government. It has specific statutory responsibilities for setting policy rates, carried out within a framework set by government but free from day-to-day political influence. Parliament gives specific goals and responsibilities. The government sets the target — which is 2%. A panel meets to agree interest rate decisions eight times a year. There are other panels on other issues, which ensures that the financial system is working properly to serve UK households and businesses. The BoE is answerable to both parliament and the public.

European Central Bank (ECB): It manages the euro and implements monetary and economic policy for the EU. Probably the most independent of central banks, the ECB charter prevents it from backing any government. However, it is criticised as being non-independent because it is at the mercy of the governments of Europe’s creditor countries.

Bank of Japan: It has a legal mandate to maintain price stability. The government is not allowed to sack the central bank governor or members of the board but parliamentarians have the right to appoint them. Bank regulation is done by the Financial Services Agency.

People’s Bank of China: The Chinese central bank is subservient to the communist party and its national objectives. It is responsible for mainlining growth, price stability, currency stability and health of financial sector.

Central Bank of Argentina: RBI deputy governor Viral Acharya used the example of the constitutional crisis in Argentina. The Cristina Fernandez-led government in 2010 attempted to raid the central bank’s reserves, resulting in bond yields shooting up and foreign investors exiting.

Turkey Central Bank: The sharp depreciation in emerging market currencies was seen to have been triggered by the fall in the Turkish lira. The collapse of the lira has been attributed to Turkish president Recep Tayyip Erdogan taking control of Central Bank of the Republic of Turkey and preventing it from raising rates.

The post of Governor

The Times of India, June 20, 2016

Who can be an RBI governor?

Unlike the appointment of fo ur deputy governors, there are no fixed rules. But most RBI governors have been civil servants (11), followed by economists (five). There has also been one banker, an insurance company executive and one RBI employee who have gone on to be the governor.

How are candidates selected?

In the past, candidates were shortlisted by the government, and the Prime Minister appointed the governor in consultation with the finance mi nister. On some oc casions, some of the candidates we re called for an in LEARNING formal interaction WITH THE TIMES with the finance mi nister (D Subbarao was appointed through this route) although the final decision was taken by the PM. Now, the government has tasked a committee headed by the Cabinet secretary to shortlist candidates and the final decision will be taken by PM Narendra Modi.

Is there an age cap or are some qualifications stipulated?

No, there is neither an age restriction nor qualifications are specified in the law. Governments have opted for those with understanding of overall economy , the financial sector as well as those familiar with th functioning of the government

What is the RBI governor' tenure?

The RBI Act allows the government to specify the term but the ? tenure cannot exceed five years, with a possibility of reappointe ment. In recent years, only S Venkitaramanan, who spent two years as RBI governor, has had a shorter stint than Raghus ram Rajan.

Selection of Governor, Dy. Governor

The Times of India, Jun 11 2016

Rajeev Deshpande

In a break from tradition, the government has tasked a selection committee headed by cabinet secretary P K Sinha with shortlisting candidates for Reserve Bank of India governor -a decision that was taken earlier by the Prime Minister in consultation with the finance minister. In the past, chiefs of other regulatory bodies -including insurance, pension and Sebi -have been shortlisted by search committees. But this will be the first time the RBI governor will be appointed similar ly, signalling a major shift in government stance and ending the special treatment given to central bank chiefs. The decision to route the RBI governor's appointment through the financial sector regulatory appointment search committee (FSRASC) seems intended to cool speculation over Raghuram Rajan being considered for a second term.

The FSRASC, set up in 2015, had interviewed candidates for Sebi chief. In February 2016, the government ignored its recommendation and reappointed U K Sinha for a year. A part from the cabinet secretary, the committe comprises additional principal secretary to PM P K Mishra, who is a permanent government nominee, and three outside experts -Rajiv Kumar of Centre for Policy Research, Manoj Panda of the Institute of Economic Growth and Bimal N Patel from Gujarat National Law University. A finance ministry representative will be a special invitee. The panel's recommendation will be sent to the appointments committee of cabinet headed by the PM, which will decide on the governor.

Going by the current thinking in official circles, a second term for Rajan could well be on the cards despite occasional reports that put him at cross-purposes with the government over issues like rate cuts or `Make in India'. At the same time, the government does not seem keen to imbue the appointment with a greater profile of attention. The committee route would be in sync with PM Narendra Modi's remark that the appointment is an “administrative decision“ that will be taken closer to September when Rajan's term ends.

The committee's recomendation for RBI deputy governor was a break from past practice as previously, the head of the regulatory body presided over the selection committee. This time around, the RBI governor was a member of the FSRASC.

The process of making top-level appointments to regulatory bodies has been problematic, with the choices often being seen to be politically influenced. Even with the committee-bound process, the choice for sensitive posts will no doubt be vetted by the political authority. But the decision to make FSRASC the recommending body that could well put up a single name instead of a short list for a regulator is aimed at reducing discretion and putting all such bodies on a par.

Salary and perquisites of RBI governors

2016: Urjit Patel’s package

December 4, 2016: The Times of India

RBI governor Urjit Patel gets Rs 2 lakh a month pay, no support staff at home

HIGHLIGHTS

RBI governor Urjit Patel gets a little over Rs 2 lakh as salary

RBI governor Urjit Patel gets a little over Rs 2 lakh as salary and has not been provided with any support staff at his residence, the central bank has said.

Patel, who took over as RBI Governor in September+ , is presently in possession of the bank's flat (Deputy Governor's flat) in Mumbai, it said. "No support staff has been provided to the present Governor, Urjit Patel at his residence. Two cars and two drivers have been provided to the present Governor," RBI said in reply to an RTI query.

The bank was asked to provide details of remuneration given to former RBI governor Raghuram Rajan+ and incumbent Patel. For the month of October — the first full month Patel was in office as Governor — Patel got Rs 2.09 lakh as his salary, the same amount drawn by Rajan as his August's salary. Rajan demitted office on September 4, and was given Rs 27,933 as remuneration for four days.

Rajan assumed the charge of RBI Governor from September 5, 2013 at a monthly salary of Rs 1.69 lakh. His salary was revised to Rs 1.78 lakh and Rs 1.87 lakh respectively during 2014 and March 2015. His salary was hiked to Rs 2.09 lakh from Rs 2.04 lakh in January 2016, the RTI reply said.

Rajan was provided with three cars and four drivers. "One caretaker and nine maintenance attendants were posted as supporting staff in the bungalow provided by the bank to the former Governor Raghuram Rajan at Mumbai," RBI said.

The Centre has recently declined to share details on appointment of Patel and other candidates shortlisted for the top post in the central bank saying these are "cabinet papers" and cannot be made public. Patel was on August 20 named as RBI's Governor to succeed Rajan.

2017, pay hike: Rs 2.5 lakh/month

RBI governor's pay hiked to Rs 2.5L per mth, April 3, 2017: The Times of India

RBI governor Urjit Patel and his deputies have got a big pay hike with the government more than doubling their basic salary to Rs 2.5 lakh and Rs 2.25 lakh per month, respectively . The “basic pay of the governor and deputy governors“ have been revised retrospectively with effect from January 1, 2016 and marks a huge jump from Rs 90,000 basic pay so far drawn by the Governor and Rs 80,000 for his deputies. Still, their salaries are much lower than the top executives of various banks regulated by the RBI.The RBI, however, did not disclose the new gross pay for Patel and his deputies following the revision in basic pay.

Governors of the Reserve Bank of India

1935- 2013: complete list

The Times of India 2013/08/07

Governors of RBI since 1935; Graphic courtesy: The Times of India, August 21, 2016

Interest rates, inflation and GDP growth during the tenures of RBI Governors, 1990-April 2016; Graphic courtesy: The Times of India, April 16, 2016

Rates during the regime of RBI governor Mr. Raghuram Rajan, September 2013-September 2016; Graphic courtesy: The Times of India, August 10, 2016

Duvvuri Subbarao: 2008-2013

Subbarao, man who fell into cauldron of woes

Surojit Gupta | TNN

The Times of India 2013/08/07

New Delhi: For Duvvuri Subbarao it was baptism by fire when he took over the reins of the Reserve Bank of India nearly five years ago.

As soon as he stepped into the corner office at the central bank headquarters in Mumbai’s Mint Road, a tsunami struck the global financial system. The force of the 2008 global financial meltdown meant that RBI had to call on all its resources to shield the economy from being brutalized.

Subbarao, a mild-mannered former civil servant, remained unfazed. With the government, he scripted a recovery process stabilizing the economy, helping it weather the storm better than some of its peers.

But this was short-lived. The economy was buffeted by stubborn inflation, including double-digit food inflation, prompting the central bank to focus on taming prices. It raised rates furiously, almost 13 times, to throttle inflation.

Of late, frosty ties between RBI and the finance ministry have dominated discussions. Critics slammed the policy to tackle inflation while the government sometimes expressed disappointment. Finance minister P Chidambaram, who is careful with words, appeared disappointed as RBI left interest rates unchanged.

“Growth is as much a challenge as inflation. If the government has to walk alone to face the challenge of growth then we will walk alone,” Chidambaram said highlighting the need for an inflation-growth balance.

Adding to Subbarao’s problems, the fiscal situation deteriorated. Growth slowed. Scandals and policy missteps, such as retrospective taxes forced investors to the sidelines. Subbarao bravely continued calling for action on the fiscal front to enable him to slash interest rates. That didn’t happen until Chidambaram stepped in as finance minister in September. His reform initiatives helped restore the health of public finances. RBI obliged with a rate cut. But this came with a caveat on the ch a l l e n g e s on the prices front.

As things appeared to settle down, the crisis on the currency front emerged, prompting RBI to work towards taming the volatile forex market.

Some economists said the RBI under Subbarao misjudged the signals. “You cannot separate two or three issues, one of which is that when it comes to inflation and growth, both monetary and fiscal policies matter. In my assessment, the country had the most unfortunate fiscal policies compounded by the most unfortunate monetary policy,” economist Surjit Bhalla said. “The RBI misjudged the economy, determinant of inflation, determination of growth and determinant of the exchange rate.”

He said the RBI under Subbarao had misjudged food inflation and hiked rates. “What could’ve been a virtuous cycle has been turned into a vicious cycle,” Bhalla said. Not all would agree with such a harsh summation.

Raghuram Rajan

Urjit Patel

2016-18

Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 27, 2018: The Times of India

The first two years of Urjit Patel’s innings as the Governor of the RBI- Economic indicators 2016-18
From: Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 26, 2018: The Times of India

When Urjit Patel was appointed the 24th governor of the Reserve Bank of India (RBI) in August 2016, TOI had cautioned those who saw him as a pro-administration governor, pointing out that he was an inflation hawk.

As he completes two years in office next week (he took over from the previous RBI governor Raghuram Rajan on September 4, 2016), Patel has demonstrated that he is no pushover. Whether it is interest rates, non-performing assets (NPAs) or the issue of public sector bank regulation — Patel has not shied away from locking horns with the government.

While his first year as the head of the central bank was overshadowed by the events following demonetisation, Patel’s tenacity came to light during his second year. That was when the RBI asked lenders to take the who’s who of India Inc to court and sell their businesses under the newly-introduced Insolvency and Bankruptcy Code. These included corporate groups like Essar, Videocon and Bhushan Steel.

Patel’s obduracy, insisting that lenders stick to the letter for classifying loans as bad, has frustrated senior bureaucrats and politicians. Government officials point out that even public sector companies fail to make timely payments. However, for those who have been paying attention to Patel, this tough stance should not come as a surprise.

A year ago in a speech titled ‘Resolution of stressed assets: Towards the endgame’, Patel had highlighted the challenges ahead, “We all must realise that it will be a long haul before the intended objectives are fully achieved... but as long as the endgame is a desirable goal, these should be worth it for placing the private economy structurally on a path of sustained growth.”

When it comes to setting of interest rates, the central bank is perhaps more independent under Patel then it was ever before. This is because Patel’s regime in the RBI coincided with the constitution of the monetary policy committee (MPC), which had a mandated objective to keep inflation at around 4%. Incidentally, the MPC was constituted based on recommendations made by a committee headed by Patel as deputy governor.

Patel’s second year saw increased friction with the finance ministry following the Punjab National Bank scam. Soon after news of the scam broke, FM Arun Jaitley lashed out at the central bank, stating that while politicians are accountable, regulators (meaning the RBI) are not.

Patel’s comeback was equally strong. In one of his rare speeches, the governor said, “Success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking.” He then listed seven legislative provisions that ensured the RBI did not have much of a say in public sector banks. The finance ministry’s pointed rebuttal brought to light the stress in the relationship.

Patel, whose signatures appear in more currency notes than any other RBI governor, is the most low-profile central banker with only eight public speeches in two years. The final year of his term, being an election year, will be even more crucial as it will also bring him into the stressed loan endgame that he speaks about.

Balance sheet

Where do RBI’s surplus funds come from?

November 21, 2018: The Times of India

The RBI’s reserves, 2013-18
From: November 21, 2018: The Times of India

Where do RBI’s surplus funds come from?

RBI’s board this week decided to set up an expert committee to examine its ‘Economic Capital Framework’. The committee is expected to break down RBI’s balance sheet to decide if its reserves are consistent with its needs.

What is the size of the RBI’s balance sheet?

In 2017-18, the size of RBI’s balance sheet was Rs 36.2 lakh crore. Its balance sheet, however, is unlike that of a company. The currency notes it prints make up more than half its liabilities. Another big share, 26%, represents its reserves. These are invested mainly in foreign and Indian government securities (essentially promisory notes bearing an interest rate against which these governments borrow) and gold. RBI holds a little over 566 tons of gold, which along with its forex assets make up almost 77% of its assets. Sometimes, the finance ministry and RBI disagree on what level of reserves RBI must hold to be consistent with its operations.

Where do the RBI’s reserves come from?

Reserves with RBI are not all of the same kind. In the current debate there are two which are relevant: The Currency & Gold Revaluation Account (CGRA) makes up the biggest share — it was Rs 6.9 lakh crore in 2017-18. This represents the value of the gold and foreign currency that RBI holds on behalf of India. Simply put, variations in this represent the changing market value of these assets. Thus, the RBI notionally gains or loses on this count according to market movements. For example, last year the CGRA increased by 30.5% largely because of the depreciation of the rupee against the US dollar and due to an increase in the price of gold.

The Contingency Fund (CF) is a specific provision meant for meeting unexpected contingencies that arise from RBI’s monetary policy and exchange rate operations. In both cases, RBI intervenes in the relevant markets to adjust liquidity or prevent large fluctuations in currency value. The CF in 2017-18 was Rs 2.32 lakh crore, or 6.4% of assets. The CGRA and CF put together constituted 26% of assets (and because in a balance sheet assets and liabilities must by definition match, also the same proportion of its liabilities).

What is the RBI’s surplus?

This represents the amount RBI transfers to the government. There are two unique features about RBI’s financial statements. It is not required to pay income tax and has to transfer to the government the surplus left over after meeting its needs. RBI’s income comes mainly through interest on the securities it holds and in 2017-18 the largest component of expenditure was a provision of about Rs 14,200 crore it made to the contingency fund.

Obviously, the larger the provision made to CF, the lower the surplus. Beginning 2013-14, RBI didn’t make a provision to CF for three successive years as a technical committee felt its “buffers” were more than enough. In the last two years, however, RBI has made provisions to CF. The adequacy of the current level of CF is one of the key issues likely to be debated extensively by the expert committee.

2013-18: surplus transferred

Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: The Times of India

RBI's Balance Sheet, 2013-18
From: Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: The Times of India

The Reserve Bank of India (RBI) transferred around Rs 2.5 lakh crore to the government during the last five years, which was around 75% of the central bank’s income.

While analysing the government’s finance account last year, the Comptroller and Auditor General studied RBI’s income, expenditure and surplus transferred to the Centre between 2013-14 and 2017-18 and found that out of its income of Rs 3.3 lakh crore, the central bank had transferred Rs 2.48 lakh crore. The highest payout was in 2015-16, when 83% of the RBI’s income was transferred to the Centre as surplus.

RBI’s reserves have been a bone of contention, with the government keen to increase the payout. What has added to the discord in recent years is the Economic Survey pointing out that RBI has higher reserves than other central banks.

In the recent past, RBI has been transferring surplus of around Rs 65,000 crore annually to the government, barring 2017 when its expenditure more than doubled to Rs 31,000 crore. Till 2016-17, the RBI’s expenditure remained below Rs 15,000 crore but shot up due to higher cost of printing currency notes at the time of demonetisation.

In a speech last month, RBI deputy governor Viral Acharya had hit out at the government for seeking higher dividend and cited the example of Argentina, where a similar development took place eight years ago, to argue that the central bank’s autonomy should not be compromised. The issue was one of the key agenda items at the marathon board meeting of the RBI.

Surplus capital, 2013-18

RBI’s forex sale profit to help bridge deficit, February 2, 2019: The Times of India

The Reserve Bank of India’s surplus capital, 2013-18
From: RBI’s forex sale profit to help bridge deficit, February 2, 2019: The Times of India

To Consider ₹28,000Cr Interim Dividend In Addition To ₹40,000Cr Already Given To Govt

The volatility in the foreign exchange and bond market is helping the government to bridge some of its fiscal deficit. The Reserve Bank of India (RBI) is understood to have made record profits from selling dollars in the foreign exchange market when the rupee came under pressure.

These profits are likely to be distributed to the government in the form of an interim dividend, which will be considered in the next board meeting of the central bank.

Economic affairs secretary Subhash Chandra Garg said on Friday that the government expects an interim dividend of Rs 28,000 crore from the RBI. This is in addition to the Rs 40,000 crore already received from the central bank during FY19, Garg said in an interaction with the media after the interim budget was announced.

The Rs 28,000-crore interim dividend will be transferred by the RBI before end March 2019. As a result, the interim dividend will help the government ease fiscal pressure as the money will come within the current financial year. The RBI, which follows a July-June financial year, paid about 63% higher dividend than the previous year (2016-17).

Meanwhile, the government has revised dividend or surplus of the RBI, nationalised banks and financial institutions to Rs 74,140 crore from Rs 54,817 crore estimated earlier in the Budget 2018-19. In the next year too, the RBI is expected to be a major contributor to the government’s revenues.

A panel headed by former RBI governor Bimal Jalan is looking at whether the central bank is holding surplus capital, which can be transferred to the government. The panel is expected to submit its report by end-March.

According to Care Ratings MD & CEO Rajesh Mokashi, dividends and profit will contribute highest (50%) to the non-tax revenue.

“The government is expecting higher dividends (11.8% more) by way of surplus transfers from the RBI as the performance of the PSUs has been impacted by nonperforming assets. Other non-tax revenues are slated to grow 8.9% over 34.3% yearon-year in the previous year,” he said. Other non-tax revenues include social, general and economic services provided by the government.

Dividends

2017: Demonetisation, printing of currency: RBI halves dividend

Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India

RBI dividend to government, 2013-17; Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India

Demonetisation, Printing Of Currency Take A Toll

In a surprise announcement, the RBI said that it has halved its dividend payment to the government to Rs 30,659 crore for 2016-17 from nearly Rs 66,000 crore in each of the previous two years. The lower dividend is due to huge expenses borne by the RBI by way of interest payment to banks as part of its liquidity management exercise and in printing notes following demonetisation.

The dividend amount was decided by the central board of directors, which met to finalise accounts for the year ended June 2016.The board would have also finalised how the central bank deals with the demonetised currency notes that were not turned in before June 2017. However, the RBI is yet to divulge details on whether it has extinguished the currency which has not been deposited.

The halving of dividend will hurt the government's finances. “The lower amount will be a concern since the government's non-tax receipts will be affected. In the Budget, it was assumed that around Rs 75,000 crore would come from RBI, public sector banks (PSBs) and financial institutions compared with a little over Rs 76,000 cr in FY17,“ said Madan Sabnavis, chief economist, CARE Ratings. According to Sabnavis, as PSBs are unlikely to do better than last year and the RBI will be transferring a smaller amount, this will impact the fiscal deficit numbers.“If other conditions remain unchanged, the fiscal deficit can increase from 3.2% to 3.4% this year,“ he added.

Devendra Kumar Pant, chief economist, India Ratings, said the drop in dividend is due to lower earnings due to reverse repo transactions (where the RBI borrows from banks) and high costs incurred in printing of notes. Besides this, the appreciation of the domestic currency vis-a-vis the US dollar led to lower returns in rupee terms. “Firstquarter direct tax collections, if continued in the fiscal, will provide some buffer for central government deficit,“ he added.

The minister of state for finance Arun Meghwal had earlier said that it costs between Rs 2.87 and Rs 3.09 to print the new Rs 500 note and Rs 3.54-3.77 for a Rs 2,000 note. Given these numbers, it would have cost the RBI over Rs 13,000 crore to print fresh currency notes during demonetisation. This is almost thrice the Rs 3,421 crore the RBI spent on printing notes in the previous year. According to economists, when the macro fundamentals are so und, the RBI ends up with weak earnings and, conversely, when the country's fundamentals are under strain, the central bank generates exceptional gains. This is because at times of stress, the RBI tightens liquidity and makes windfall profits lending to banks at high rates.But when the rupee is strengthening, the central bank loses money by buying a falling dollar. The biggest cost to the RBI by far, when the country is facing a problem of plenty, is the cost of impounding surplus liquidity. Banks are sitting on sur plus funds due to absence of credit demand. Soumya Kanti Ghosh, chief economist, SBI, said, “Credit growth has decelerated by Rs 1.5 lakh crore in current fiscal -a historic low.“ He added that given surplus funds, SBI, Axis Bank and Bank of Baroda have reduced the savings bank rate to keep the lending rate low.

Since November, banks have been awash with surplus liquidity thanks to cash being deposited with them.While most of these were slowly withdrawn, a large chunk continued to remain with banks. According to dealers, the surplus liquidity with banks has risen to Rs 3 lakh crore as compared to the RBI's target range of Rs 1 lakh crore.

2016> 2018

At ₹50,000cr, RBI gives govt 63% more dividend, August 9, 2018: The Times of India

The RBI has transferred a surplus of Rs 50,000 crore to the central government, which is 63% more than last year’s dividend of Rs 30,659 crore. This payout is also 91% of the Rs 54,817-crore dividend income that the government budgeted from the RBI, nationalised banks and other financial institutions in its Budget 2018.

It is likely that the central bank would have generated a higher surplus arising out of foreign exchange operations. The RBI has sold foreign currency assets worth over $20 billion this year, which is reflected in the decline in forex reserves from nearly $400 billion on March 30, 2018 to around $379 billion. The foreign currency assets sold were worth Rs 1.40 lakh crore and would have added to the RBI’s rupee balance sheet and enabled it to pay a higher dividend.

Public sector banks have not distributed any dividend to the government as all but two of them have reported losses. However, insurance companies would have made some payment to the government. Earlier in March, the RBI paid an interim dividend of Rs 10,000 crore at the insistence of the Centre to support fiscal position.

“The central board of directors of the RBI, at its meeting held on August 8, approved the transfer of surplus amounting to Rs 500 billion (Rs 50,000 crore) for the year ended June 30, 2018 to the government,” the central bank said in a statement.

Unlike other financial institutions, the RBI follows a July-June financial year. The dividend payout had shrunk last year as the RBI had to spend a lot of money in printing of new currency notes following demonetisation in November 2016.

2020; 2012-2020

RBI transfers ₹57,128 crore surplus to govt for 2019-20, August 15, 2020: The Times of India

RBI dividend to the government, 2012-2020.
From: RBI transfers ₹57,128 crore surplus to govt for 2019-20, August 15, 2020: The Times of India

In Line With Budget, But Won’t Make Up For Revenue Shortfall

The Reserve Bank of India (RBI) announced a dividend payout of Rs 57,128 crore to the government, in line with Budget expectations but not enough to make up for revenue shortfalls from other heads. This year’s dividend is not comparable to last year’s surplus transfer of Rs 1,76,051 crore, which included a one-time transfer of extra reserves in line with the recommendation of the Bimal Jalan-headed committee.

The dividend was declared in the 584th meeting of the RBI’s central board. Besides approving accounts and maintaining a 5.5% contingency risk buffer, the board also discussed setting up of an innovation hub. Before adoption of the Jalan committee recommendations, the buffer had stood at 6.8%.

In the Union Budget 2020, the government had provisioned Rs 89,600 crore in dividend from the RBI, state run banks and financial institutions. Of this, the RBI was expected to contribute Rs 60,000 crore. Nationalised banks will not be declaring any dividend this year as the RBI has barred them from doing so in order to conserve capital to cover defaults arising out of the Covid-19 crisis.

“The overall balance sheet of the central bank had expanded close to 30% in the RBI accounting year. Such rapid expansion would obviously limit the amount of seigniorage surplus to the government. Also, at the current rate, the total capital of the RBI including reserves is ahead of the 20.8-25.4% recommended by the Jalan committee that the central bank needs to maintain,” said SBI chief economist Soumya Kanti Ghosh.

According to Ghosh, the government cannot look to the central bank to raise funds. “The surprise to the market was the rise in inflation of close to 7%. This is because of the shift in consumption from goods and services to food items. This will make it difficult for the RBI to cut rates. Now it is for the government to take action,” said Ghosh.

Bankers say that RBI’s revenue generation is highest when there is volatility in the financial markets — either bonds or foreign currency. During times of rupee volatility, the RBI ends up selling billions of dollars of foreign currency assets, which generate huge profits because of the weaker rupee. Similarly, when there is volatility in the bond markets, the RBI makes money through its open market operations.

This year, despite the economic crisis, financial markets — including the currency and bond markets — have been stable with the central bank buying dollars. Facing a massive tax shortfall, along with higher spending due to Covid, the government is keen to maximise revenue from other sources, especially when the department of investment and public asset management (Dipam) has failed to garner resources.

Gold reserves

Purchases in 2009, 2018

RBI boosts forex kitty with first gold buy in 9 years, September 4, 2018: The Times of India

The Reserve Bank of India (RBI) has bought nearly 8.5 tonnes of gold in financial year 2017-18, the first purchase of yellow metal by the central bank in almost nine years, a report said.

The RBI held just over 566 tonnes of gold as on June 30, 2018, compared with 558 tonnes as on June 30, 2017, according to the central bank’s latest annual report for 2017-18.

The central bank had last purchased gold in November 2009, when it had bought 200 tonnes of yellow metal from the International Monetary Fund (IMF).

Of over 566 tonnes of gold reserves, about 292 tonnes is held as backing for notes and is shown as an asset of the issue department, and the balance 274 tonnes is treated as an asset of the banking department.

The value of gold held as asset of banking department rose by 11.1% to Rs 69,674 crore as on June 30, 2018, from Rs 62,702 crore as on June 30, 2017.

This increase was primarily on account of depreciation of rupee as against the dollar and the addition of nearly 8.5 tonnes of gold during the year, the RBI’s annual report said.

2014-19

The RBI’s Gold reserves, 2014-19
From: March 4, 2020: The Times of India

See graphic:

The RBI’s Gold reserves, 2014-19

Government- RBI relations

Why govts want central banks on their side

November 5, 2018: The Times of India

Why govts want central banks on their side

A country's central bank and its government may not always see eye to eye — the latest rift between the RBI and the Centre is a case in point. But what makes a central bank essential to a country's economy, and what kind of power does it enjoy?

Can an economy work without a central bank?

Considering the influence of central banks in today’s age, this is a difficult question to answer. Many countries have witnessed a constant tussle between the elected government and their central bank but no modern government has been able to either abolish or significantly curtail the power of their central bank. In the absence of such a bank it is difficult to imagine how a reliable payments system, a stable currency and controlled inflation level could be maintained.

What is the role of a central bank?

Among the important roles of a central bank is to control the cost of money by changing interest rates. This role itself gives it immense power to stimulate or slow the economy. Apart from this, the central banks — in our case Reserve Bank of India — formulate, implement and monitor the country’s monetary policy. It monitors the financial system by prescribing broad parameters of banking operations to ensure the public has confidence in the system and protects depositors’ interest.

The bank also monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency in circulation. The central bank also does merchant banking for the government as well as other banks.

How independent is the RBI?

Like other central banks, RBI is an independent entity within the government. It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and up to four deputy governors. There are 10 other directors nominated by the government, two government officials and four non-official directors from local boards. There are also four local boards in Mumbai, Kolkata, Chennai and New Delhi to advise the central board on local matters. Local board members are nominated by

Where is the most powerful central bank?

While it controls the world’s largest economy, US's Federal Reserve Bank also issues treasury bills to raise money to finance spending. These US securities are bought by other nations and their value is based on the price of the US dollar. If the Fed lowers interest rate and makes dollar cheaper to borrow, the pinch will be felt by all other economies. Similarly, a stronger dollar will benefit countries that hold US securities.

1935-2016: Govt. vs. the RBI

Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: The Times of India

1935-2016: tiffs between the govt. and the RBI
From: Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: The Times of India

Another DG Gives Speech Attacking Centre On Lending

Hostilities between the Modi government and the Reserve Bank of India remained at heightened levels with a top bureaucrat taking to social media on Friday morning to mock a recent speech of deputy governor Viral Acharya. Hours later, the RBI uploaded a speech another deputy governor, N S Vishwanathan, gave at XLRI Jamshedpur earlier this week. In his speech, Vishwanathan attacked the government’s arguments for easing capital requirements, saying that it would result in banks being strong only in a “make-believe” manner.

Economic affairs secretary Subhas Chandra Garg, the finance ministry’s point person for managing ties with the RBI, fired the first salvo when he took aim at Acharya’s comment that “governments that do not respect central bank independence will sooner or later incur the wrath of financial markets”.

RBI dy guv against govt’s bid to push bank credit

Rupee trading at less than 73 to a dollar, Brent crude below $73 a barrel, markets up by over 4% during the week and bond yields below 7.8%. Wrath of the markets?” economic affairs secretary Subhas Chandra Garg tweeted on Friday.

Ironically, Garg’s very public dig at governor Urjit Patel’s hand-picked deputy came just two days after the finance ministry issued a carefully-worded statement that among other things signaled its displeasure with the RBI for airing its differences with the government.

Vishwanathan, who unlike Acharya is a career central banker, appeared to be at odds with the government’s push to accelerate bank credit when he indicated that higher growth in lending was not desirable. “It may be noticed that in the past, high levels of credit growth due to ‘supply push’ have resulted in high corporate leverage and consequent NPAs in the banking system,” he said.

“We must guard against any push for dilution of standards in the name of aligning them with international benchmarks because that will be cherry-picking and will result in our banks being strong in a make-believe sense and not in reality.” This appeared to be a response to financial services secretary Rajiv Kumar’s statement last week that minimum common equity (CET) Tier I ratio as prescribed by RBI stands at 5.5% as against 4.5% under Basel III norms. A relaxation of the capital requirement to Basel III levels would enable bank to lend up to Rs 6 lakh more.

But, according to the deputy governor, current levels of provisions maintained by banks may not be enough to cover the expected losses due to defaults, and hence adequate buffers must be built to absorb the expected losses which are under-provided. Vishwanathan said that bank credit was already growing at 14% year on year in line with GDP growth. Within this, bank loans to NBFC during this period grew 48.3%.

According to Vishwanathan, international capital norms have been designed based on internationally observed recovery rates. However, the loss given defaults are far more than those observed internationally. He also shot down arguments that some defaults are caused by external circumstances and that regulations should treat them differently based on the reasons behind them. “This is a fallacy. There are two issues here: recognition and resolution. The recognition of default or accounting for deterioration in the quality of asset should be independent of the reasons for such default or deterioration.”

When mediating PM, diplomatic governors averted crisis

Mayur Shetty, December 11, 2018: The Times of India

Public statements and disclosures by former governors — Y V Reddy, D Subbarao and Raghuram Rajan — in their writings have shown that there have been disagreements between the finance ministry and the RBI. But none of these disputes ever boiled over to a situation leading to the governor’s resignation.

According to central bank insiders, in the past governors have adopted a strategy of convince and compromise. Also, in the case of differences that arose during the 10-year UPA government, then Prime Minister Manmohan Singh, himself a former governor, helped in brokering peace between the RBI and the finance ministry. Even though previous governors have been bureaucrats, after coming to the RBI it is the chair that has taken over. Both Reddy and Subbarao have been extremely strong votaries of independence of the central bank after taking charge as governors. However, despite their independence they have acknowledged that the finance minister is senior to the RBI governor. In the case of Patel, his finance minister Arun Jaitley had taken a fourmonth break between May and August — a time when differences with the government were boiling over.

Additionally, in the past the differences were in the area of interest rates that has ceased to be an issue after the creation of the monetary policy committee (MPC), which coincided with the appointment of Patel.

Past governors have also managed to handle their differences with the finance ministry using their personal connection with finance ministry officials. Former governors, Reddy and Subbarao, were both former bureaucrats and had many friends in the finance ministry. Rajan, though not a bureaucrat, had worked in Delhi as chief economic adviser where he was prepped for the position of RBI governor.

In the case of Patel, his engagement with the finance ministry was two decades earlier as deputy to the IMF India representative. During this period, he build a friendship with Manmohan Singh.

There are some insiders who feel that the government’s choice of appointing outside economic experts as governor is a failed experiment as they have very little skin in the game.

Raghuram Rajan had made it clear that he had a job at Chicago Booth waiting for him when his term ended. Similarly, many expect that Patel would pursue academic interests after his stint as governor.

1956-57: Pt. Nehru vs. Sir Rau

Sidhartha, November 5, 2018: The Times of India

The traditionally fraught nature of government-RBI relations goes back to the early days of the central bank when Sir John Osborne Smith resigned his governorship in 1937 following differences with the colonial government over interest and exchange rates.

But it is Jawaharlal Nehru’s stormy exchanges with Sir Benegal Rama Rau, leading to his resignation as RBI governor, that has tickled the interest of people in the finance ministry – and may provide them with an effective counter to the Rahul Gandhi-led Congress’s attack on the government for undermining the autonomy of the central bank.

Rau, a civil servant, was the fourth governor of RBI and quit in January 1957 after seven and a half years in the saddle when Nehru sided with finance minister TT Krishnamachari and made it clear that RBI was part of “the various activities of the government”.

Rau had accused TTK of “rude behaviour” over differences that began over a Budget proposal. TTK had referred to RBI as a “section” of the finance ministry and described it as “reserved”, as well as expressed doubts in Parliament “as to whether it is capable of doing any thinking”.

In a letter to Rau, India’s first Prime Minister and Rahul Gandhi’s great-grandfather, wrote: “It (RBI) has to advise government, but it also has to keep in line with government.” He suggested the governor could resign if he thought that it was not possible to continue; Rau put in his papers a few days later.

Nehru said it would be “completely absurd” if the central bank followed a different policy because it did not agree with the government’s objectives or its methods.

“You have laid stress on the autonomy of the RBI. Certainly it is autonomous, but it is also subject to the central government’s directions…. Monetary policies must necessarily depend upon the larger policies which a government pursues. It is in the ambit of those larger policies that the RBI can advise. It cannot challenge the main objectives and policies of government,” asserted Nehru.

“When you talked to me I pointed out to you that it was for the central government to lay down policies and the RBI could not obviously have policies contrary to those of the central government. You agreed with this. And yet I find in your memorandum a different point of view,” he added.

The RBI believed that TTK’s Budget proposal would effectively push up interest rates and forwarded a resolution of the central board. “The board requests the government to consult RBI in advance on all matters which significantly affect the monetary structure and policy,” the board said on December 12, 1956.

The same day, Nehru wrote to the governor pulling him up for his “improper approach” which was seen to be “agitational” against the Centre.

A fortnight later, Rau responded to Nehru’s letter saying that despite differences on several issues, nothing had leaked out from RBI. He then wrote that the government could reject RBI’s advice though it should be given an opportunity to place all facts and its view before a decision was taken on “technical and sometimes complicated monetary issues”.

The then governor also took “strong exception” to some of Nehru’s comments on not supporting government policies and said the consultations over the Budget proposal were inadequate.

In the Budget, the government had proposed to increase the stamp duty on an instrument used by lenders to get loans at a discount to RBI’s key policy rate – the bank rate. RBI argued that the higher stamp duty, which it said was decided without prior consultation, would push up the bank rate by half a percentage point.

Parallels are being drawn between the developments six decades ago and the current power tussle between the Centre and RBI – although in that instance, the central bank had gone out on a limb to criticise a Budget proposal whereas it’s the government that is now unhappy with the RBI for not taking on board its concerns about the economy.

While most governments and the central bank have had differences over issues ranging from interest rates to regulations, the current rift has widened to an extent that the finance ministry has sought formal consultations with the governor in what is one step short of invoking Section 7 of the RBI Act, a provision that has never been used.

The government has been pushing RBI to address its concerns related to providing support to non-banking finance companies, ravaged by the impact of defaults by IL&FS, in addition to addressing the credit needs of small businesses and reviewing the prompt corrective action (PCA) framework dealing with weak banks.

2014, PM Manmohan Singh: Governor must heed govt

Guv must heed govt, Manmohan said in ’14, November 7, 2018: The Times of India

The dynamic between the RBI and the government is one of give and take but if the finance minister insists on a certain course of action, his view will need to prevail, former PM Manmohan Singh has said in his daughter Daman Singh’s book “Strictly Personal: Manmohan and Gursharan”.

Recalling his tenure at the central bank, Singh says, “There is always give and take. I had to take the government into confidence. The governor of the Reserve Bank is not superior to the finance minister. And if the finance minister insists, I don’t see that the governor can refuse, unless he is willing to give up his job.”

Singh’s comments in the 2014 book are significant in the context of tensions between the Centre and RBI governor Urjit Patel amid heated commentary on the autonomy of the central bank. Singh says that after recording a divergent point of view, the governor can insist on directions from the government which would then need to be followed.

Singh speaks of Caparo, tension with then FM Pranab Mukherjee

Singh speaks of tensions with then finance minister Pranab Mukherjee over the move of the Londonbased Caparo group, in which business magnate Swraj Paul and his family held a majority share, to buy shares of Escorts Group. The UK-based business initiated the purchase of shares even before the RBI granted it permission. The RBI informed the government that it intended to reject Caparo’s application.

The book notes that the government of the day, however, did not have any misgivings and asked the RBI to grant permission, which it did. The matter went to court and the Supreme Court finally held the government’s order to the RBI and the permission granted by the central bank to be valid.

Asked about the case, Singh says, “Well, it was a situation that brought me in conflict with the government. I have given the view of the Reserve Bank, but said the government could always overrule it. This was a government scheme... Ultimately, it was resolved by the government giving a directive to the RBI.”

Singh makes it clear that the government would have liked the RBI to have acted on its own with regard to the application under a portfolio investment scheme for NRIs. But he said the RBI did not act until the explicit approval of the Cabinet Committee on Political Affairs was conveyed to the central bank. In a second case the book refers to, Singh had strong reservations over the application of the Bank of Credit and Commerce International to open a couple of branches in India. Permission was almost granted when Charan Singh was PM and was finally cleared by the Congress government in 1983.

The government, unhappy with the RBI’s power to issue bank licences, sought to take these powers away. “I sent my letter of resignation to Pranab Mukherjee and the PM. Later, I managed to persuade Mrs Gandhi that the Cabinet decision was not proper... they dropped the idea,” Singh says.

10 flash points between Govt., RBI: 2017-18

2017, 2018: tensions between the Government and the RBI under Patel, a chronology
2019, Nov: The RBI’s Central board of directors
From: Sidhartha & Mayur Shetty November 19, 2018: The Times of India

10 flash points between Govt., RBI- 2017-18- Part I
From: October 30, 2018: The Times of India

10 flash points between Govt., RBI- 2017-18- Part II
From: October 30, 2018: The Times of India

See graphics:

2017, 2018: tensions between the Government and the RBI under Patel, a chronology
2019, Nov: The RBI’s Central board of directors

10 flash points between Govt., RBI- 2017-18- Part I

10 flash points between Govt., RBI- 2017-18- Part II

Points of friction

Sidhartha, ‘RBI’s refusal to engage forced govt to mull extreme legal step’, November 2, 2018: The Times of India

Friction between the Government and the Reserve Bank of India- Part I
From: December 11, 2018: The Times of India

Friction between the Government and the Reserve Bank of India- Part II
From: December 11, 2018: The Times of India

See graphics:

Friction between the Government and the Reserve Bank of India- Part I

Friction between the Government and the Reserve Bank of India- Part II

‘Guv Patel, Team Not Happy With An Assertive Board’

The Modi government was driven to consider the extreme step of invoking the never-before-used Section 7 of the RBI Act by central bank governor Urjit Patel’s reluctance to engage with stakeholders, according to highly placed sources in New Delhi. “He was scarce and unavailable to bankers, industry and market players even on matters of pressing concern. We were left with no choice. It was the only way we could bring the central bank to the table,” one person close to the development told TOI.

This confirms TOI’s exclusive report of Monday that tensions between the Patel-led RBI and the government had “come to a head” because the two were not only not able to see eye-to-eye on a host of issues, there had also “been an almost complete breakdown in communication” between them.

RBI didn’t make public decisions taken at last board meeting

The move could be significant as a consultative process sets the stage for a government to issue directions to the RBI if there is no agreement,” the report added.

No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history. The Section says, “The central government may from time to time give such directions to the bank as it may, after consultation with the governor of the bank, consider necessary in public interest.”

The Section 7 reference to RBI was the first formal step towards discussing a troika of concerns with RBI — credit flow, liquidity, and problems facing medium and small businesses — failing which the central bank would have to face the “legal instrument of last resort”, which would be tantamount to a vote of no-confidence in the gover nor.

The finance ministry issued a carefully-worded statement saying the government and the RBI should be “guided by public interest and the requirements of the Indian economy”.

The government had hoped that RBI would go by the board’s collective view instead of the governor and his deputies charting the course of the financial sector by themselves. But the central bank — which also doubles up as regulator for banks and some market segments — did not seem to go by the view of the directors. Among the 18 directors on the central board, 11 are independent, with five RBI officials and two finance ministry bureaucrats making up the complete cast.

At last week’s board meeting, it was decided that four decisions that had been taken would be made public. However, RBI, which it now appears, had reluctantly acquiesced into the majority decision, decided otherwise and made no disclosure about the “unanimous” calls. The radio silence came as a surprise because the directors had left the meeting convinced that RBI officials were on the same page.

At the marathon meeting, which had over 20 items on the agenda, the RBI brass had suggested that the issues that could not be decided, would be taken up at next meeting. The meeting was to be held post-Diwali. Accordingly, Patel verged on announcing a specific date but was stalled in his tracks by a top RBI official, who suggested that it was time to wrap up. Thus, the date remained undecided.

In fact, RBI’s announcement of November 19 as the date when the board would meet next, came only after some independent directors, frustrated by the delay, forced the management on Wednesday to take a decision, said sources. While the government has faced flak for nominating S Gurumurthy and Satish Marathe on RBI’s central board, as well as removing Nachiket Mor, people close to the decision said the move was necessary and aimed at turning it from merely being a rubber stamp to a body which could hold its own while engaging with the bank leadership.

This was a significant turn. For over the years, it was the Central Committee of the Board which had become the “real” decisionmaking body with the board starving itself of powers to regulate by delegating those to the CCB.

The sudden power shift, with the board asserting itself and demanding a say, does not seem to have gone down well with the RBI brass, prompting howls of protest about government interference, said a top official who has been watching the evolving dynamics on Mint Road.

Sources said that at the last board meeting, financial services secretary Rajiv Kumar made a detailed presentation on the need to align Indian standards with global norms instead of stiffening them unnecessarily. The suggestion was an attempt to convince RBI to tweak its rules for capital and PCA. There were also complaints about liquidity shortage and Gurumurthy flagged the concern about inadequate fund availability for small businesses.

While most of the board, including corporate sector representatives agreed with the view, RBI representatives, supported by some of the independent directors, did not agree.

2017, 2018: tensions under Patel

Sidhartha & Mayur Shetty, Tensions between Patel-led RBI, govt coming to a head?, October 29, 2018: The Times of India

In New Delhi and Mumbai’s corridors of power and money, the growing schism between the government and the RBI, and particularly its governor Urjit Patel, has been the subject of much talk since the early months of this year.

During this time, not only have the two not seen eye-to-eye on a host of issues, there has been an almost complete breakdown in communication between the government and RBI.

The simmering differences have now come to a head with RBI’s deputy governor Viral Acharya – who is widely seen to have been brought in by Patel from his professorial position in New York University – on Friday clearly hinting at government interference and emphasising the need for autonomy (TOI had front-paged his remarks in its October 27 edition).

The tension has triggered fevered speculation about Patel’s fate. Not only does he appear highly unlikely to get an extension beyond the threeyear term that ends next September, questions have arisen over his continuance. Patel did not respond to a message from TOI.

Some people in the NDA government have gone so far as to acknowledge in private that “even Raghuram Rajan was better than this” — and Patel’s predecessor didn’t leave on the best of terms.

Govt, RBI clashes on at least 6 issues in ’18 alone

A person in the NDA government told TOI a few months ago, “After Rajan, it’ll look bad if Patel is asked to go.” And people who have a sense of Patel’s thinking say that he knows the government won’t keep him on beyond his current term, so he doesn’t really care about being in its good books.

In 2018 alone, there have been at least half-a-dozen issues on which the two have taken opposing stands. While the spat began with the government unhappy with the inflation-focused RBI for not cutting interest rates – and even raising them – it spilled over into regulation, something the central bank believes is its exclusive domain.

RBI’s February 12 circular on classification of non-performing assets and norms of loan restructuring was the next flashpoint. The government saw it as overly harsh, and indeed it drove all but two staterun lenders into the red.

Around the same time, as the Nirav Modi fraud broke, the government hit out at RBI on supervision, drawing an almost-immediate rebuttal with Patel seeking more powers to oversee public sector banks so that they are at par with their private sector peers.

In addition, the government has been insisting that RBI step in to provide relief to non-banking finance companies (NBFCs), which are grappling with a cash crunch after IL&FS defaulted on repayments. The central bank has refused to play ball.

What has also irked the central bank brass is the way in which Nachiket Mor was removed from the RBI board more than two years before his term was to end without formally informing him. Mor’s removal was seen to be linked to his vocal opposition to the government's demand for a higher dividend.

In his strongly worded speech late last week, RBI deputy governor Viral Acharya said, "Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution".

Patel is said to have virtually been incommunicado for the past three days, heightening suspense ahead of Monday's meeting of the RBI board, the second such interaction in less than a week. Last week’s meeting was stormy by most accounts with recently-nominated director and SJM activist S Gurumurthy seeking RBI’s intervention to help small businesses, while government nominees made a detailed presentation on the need to bring capital norms in line with global standards instead of making them stiffer. The change is seen to be crucial to get weak banks that are now under RBI’s prompt corrective action out of the classification. This would lift some of the curbs on their lending and expansion.

In remarks made on Saturday that were seen to be in response to Acharya’s, although he didn’t name RBI, finance minister Arun Jaitley said regulators need to have wide-ranging high quality discussion with all stakeholders. “I think, for any regulatory mechanism, stakeholder consultation has to be of a very high quality, which will probably lead to a revisiting of traditional thoughts and opinions. And that’s why, (when) several regulators now publish their approach papers or tentative drafts, they hold hearings, meet individuals, meet groups of stakeholders together and improve upon what’s being said.”

A separate payments regulator has been another friction point with RBI stating its position publicly on why it did not support the move. In fact, it went to the extent of releasing its dissent note on a separate regulator on its website.

People in the government said the tension should not be seen through a government versus regulator prism. They argued that the onus of taking the board along rests with the governor.

They also denied it was trying to encroach on RBI’s turf, but added that institutional autonomy should be a means for achieving faster growth rather than an end in itself.

2018, Nov: The appearance of a truce

Sidhartha, RBI resisted acting on Nov board deal, December 11, 2018: The Times of India

In the hours that followed the marathon November 19 RBI board meeting, there was a conscious effort – especially by the external directors and government nominees – to paint a picture of cordiality. The impression sought to be conveyed was that the RBI had come around to the government’s way of thinking on several key issues.

But the ceasefire proved ephemeral. A committee which was to be constituted by the RBI and government to review RBI’s capital reserves has yet to see the light of day.

Similarly, when the RBI’s Board for Financial Supervision (BFS) met last week, it did not consider the government’s demand for a review of the PCA (prompt corrective action) framework.

RBI-govt communication breakdown again evident

Many in the government believed that RBI, led by governor Urjit Patel, was “circumventing” board decisions despite the fact that they had been communicated through a formal statement after the November 19 meet. They had earlier pointed out that Patel and his deputies had abruptly wrapped the October 23 board meeting and refused to disclose even the decisions on which there had been an apparent consensus.

That Patel was not at ease with the government’s push for a review of the ECF was evident from his statement to a parliamentary panel (reported by TOI on November 27) that the RBI’s current level of reserves were necessary as a buffer against international volatility and to maintain creditworthiness.

At the next board meeting of the central bank on December 14, the government was expected to ask for a relook at RBI governance structure, with greater oversight by the board. There was a view in the government that the RBI had in the past kept the board out of the picture and taken key decisions in committees packed with hand-picked members.

While breaking the story about the stand-off between the RBI and the government TOI had said there had been a “complete breakdown in communication” between the two.

The big issues: from IBC to Sec 7

Clash course: From IBC to Sec 7, December 11, 2018: The Times of India

RBI’s Feb 12 Diktat That Patel Wouldn’t Dilute Put Govt, PSBs On Sticky Wicket

A key reform measure — the Insolvency and Bankruptcy Code (IBC) — was the trigger for the RBI’s February 12 circular, which turned out to be an inflection point in the relationship between the government and the central bank.

On February 12, the RBI did away with all restructuring scheme, which effectively gave borrowers more time to repay. The central bank’s rationale was that now there was a new law that enables banks to recover money and there was no need to kick the can further down the road. This put the government — the owner of public sector unit (PSU) banks — in a spot as PSU banks now needed more capital then envisaged. Loans had to be classified as defaults before being referred under the IBC and bad loans did soar as delayed repayments were not condoned. While the Centre did not attack the February 12 circular directly, it used the Nirav Modi scam, which broke soon after, to criticise the central bank.

Patel, in a speech at Gandhinagar in March 2018, hit out at the government stating that “success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking”. He then listed out seven legislative provisions that ensured that the RBI did not have much of a say in PSU banks. While the February 12 circular was a reform measure aimed at cleaning bad loans, its timing turned out to be disastrous. Banks were hit by a triple whammy — bond losses due to rising rates, over Rs 20,000-crore provision for Nirav Modi/Gitanjali accounts and additional provisions for non-performing assets (NPAs). Overall PSU bank losses crossed Rs 60,000 crore.

Many in the finance ministry were upset as the high NPAs triggered the imposition of prompt corrective action (PCA) on half the public sector banks and scuppered all plans of boosting growth through increased lending. Ministry officials compared the RBI action on PSU banks of forcing a patient to run a marathon when he was not fully out of the ICU.

What spoiled relations further was Patel’s refusal to engage with ministry officials or even other ministers. Nitin Gadkari, minister of road transport and highways, said in a forum addressing businessmen that his personal experience of dealing with the RBI was not good. Other ministers are known to have complained after filing to to get an audience with the governor.

It was ultimately the differences over NPA classification that led the government to the path of Section 7 of the RBI Act, which empowers the government to give directions to the central bank. When the power producers challenged the RBI’s circular in the Allahabad high court, the government which was a party said that it did not have any objection. It was at this point that the court observed that the government could consider giving directions to the RBI on the issue. While the government did use the Section 7 threat, it was on a host of issues and not just non-performing assets.

Dec/ Gov. Urjit Patel resigns

Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: The Times of India

In Dec 2018, Urjit Patel resigned, becoming independent India’s second governor to quit before the expiry of his term
From: Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: The Times of India

What: Reserve Bank of India (RBI) governor Urjit Patel resigned from the post on Monday citing ‘personal reasons’. His term was to end in September 2019. One of RBI’s deputy governors may take charge as the interim head till government finds a successor. The names doing the rounds for the next governor include Subir Gokarn (executive director IMF), SC Garg (economic affairs secretary) and Rajiv Kumar (secretary, financial services).

History: Patel is independent India’s second governor to quit before the expiry of his term over differences with the finance minister. Benegal Rama Rau, RBI’s second governor, had quit in 1957 after complaining about ‘rude’ finance minister TT Krishnamachari. RBI’s first governor, Osborne Smith, an Australian, had also quit in 1937 for not toeing the British government line.

Why? Differences with the Centre over RBI’s decisions and its functions may have prompted the resignation. Government and RBI were not on the same page (and the differences were public) on issues like the use of RBI’s surplus reserves, handling of weak banks, funds for shadow banks, and interest rates. For the first time in history, the government had invoked its powers to instruct the central bank on certain issues. A sudden overactive RBI board (filled with government nominees), which used to be only an advisory body, could be another factor. “This should be seen as a statement of protest,” said former RBI governor Raghuram Rajan.

So what? It’s not normal. Patel is the first governor since the 1990s to have quit before completing his term of three years. Raghuram Rajan says, “All Indians should be concerned about Governor Patel's resignation.” It’s not a good sign for RBI’s autonomy. An independent central bank is a check on the government, who may be keen to push for an easier way to prosperity for short-term gains. The move will also impact foreign investors’ perception of the Indian economy.

Why now? There are various theories doing the rounds. Theory 1: A board meeting was slated for December 14 in which he would have been forced to endorse decisions he didn’t favour. Theory 2: He offered to quit on November 9, the day he met PM, but was asked to stay till polls.

Issues

2016/ Questions Post-Demonetisation

Usha Thorat , The promise to pay the bearer “India Today” 15/12/2016

"The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country," said former deputy governor of the Reserve Bank of India,Usha Thorat.

There are many questions people are asking on the demonetisation move and the currency situation in the country. Some of the top-of-the-mind ones are quoted below, and these are my answers:

How does the RBI decide how much currency to print? What say does the Centre have in such a decision?

The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country. The RBI makes an annual assessment of the demand for currency. Currently, currency constitutes about 12 per cent of GDP. Hence if the pace of digitisation is the same as the growth in GDP, currency demand should be at least equal to GDP growth (in nominal terms) unless we are pushing for a higher pace of digitisation. Also, seasonal factors affect currency demand-we witness higher demand during harvesting time, festival time and even election time. Finally, there is replacement demand, i.e., soiled notes have to be taken out, and good, clean notes put back in circulation. After making the estimate and deciding on the denomination-wise requirement, indents are placed with the note presses. This exercise is done in consultation with the Government of India.

Why couldn't the RBI have printed notes faster? If the Indian presses couldn't cope with the print load, why not do it abroad?

The trade-off is between ensuring secrecy and having sufficient time to print and stock for remonetisation. The reports seem to suggest that 2 billion notes of Rs 2,000 were got ready prior to announcement. Against notes in circulation of over 15 billion pieces of Rs 500 and 6 billion of Rs 1,000, the annual supply from both the presses together was one-third in each of these two denominations in the past two years. Since the announcement, it is presumed the note printing presses have stepped up production of the Rs 500 and Rs 100 notes. Importing notes to remonetise could be thought of, but the capacity to print currency notes globally is limited and restricted to a few companies. Further, there would be considerable lead time involved. It may not serve the purpose.

What was the total cash in circulation prior to demonetisation? What was the amount held as cash reserve ratio (CRR) by banks and the RBI? And who holds it, and is it held in the form of cash?

Prior to demonetisation, currency or cash in circulation (as on November 4) was Rs 17.7 lakh crore; as on November 25, the figure dropped by Rs 6.1 lakh crore to Rs 11.6 lakh crore. Currency in circulation is a liability of the RBI. It is held either by the public or by banks that have some currency in their vaults; the latter forms a very tiny part of currency in circulation. Banks do not hold cash reserves in the form of currency-these are held as deposits with the RBI and are reflected as liabilities on the RBI balance sheet.

How does the RBI invest its reserves? What does it do with the profit it generates from this?

The RBI earns income from its investments in various assets. The major component of the RBI's assets-roughly 72 per cent-represents the foreign currency assets held in permitted investments abroad. Gold constitutes four per cent of the RBI's assets while Government of India securities account for 22 per cent. In 2015-16, the RBI income was Rs 80,870 crore, of which Rs 74,924 crore was interest income. Interest on foreign securities accounted for 32.5 per cent of interest income and that on government securities 57.5 per cent. Section 47 of the RBI Act states that after making provisions for bad/doubtful debts, depreciation in assets, contribution to the staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers, the balance of the bank's profits is to be paid to the Central government. Printing of currency notes, employee costs and agency charges (paid to banks to conduct government business) accounted for 84 per cent of RBI expenditure in 2015-16. The surplus profits transferred to the government for the year was Rs 65,876 crore and represented 99.99 per cent of gross income less expenditure.

At the end of the demonetisation drive, what happens to the extinguished cash? Does it hand over this money to the GoI to spend as it wishes or retain it as profit after lessing the cost to print new notes?

At the end of the demonetisation drive, the currency notes returned to the RBI will be shredded, presumably after checking for fakes. The RBI's supply of notes to the public may or may not be equal to what was in circulation before the November 8 measure. While restrictions cannot be placed indefinitely on cash, temporary limits can be justified citing the time taken to print the required amount of currency. Regarding the RBI's liability on demonetised notes that have not been exchanged/deposited in bank accounts, the central bank governor, in a recent press conference, stated that it continues in the bank's balance sheet as of now. This is because the last date for surrender at the RBI counter has not yet been notified (March 31 was mentioned as a date in the PM's speech). There is a view that the RBI's liability ceases only when the last date for exchange at the bank's counter is notified through a legislative process. At such a juncture, to the extent liabilities are extinguished, assets could be contracted through retirement of government debt held by RBI and/or creating a reserve at the bank to the same extent. It may not be prudent to transfer the amount to the government without assessing the macroeconomic implications, and the monetary conditions required, for achieving the inflation target set by the RBI.

Are the new currency notes harder to counterfeit?

One of the objectives of demonetisation is to guard against counterfeiting. Several security features are built into the notes to prevent counterfeiting. The government has announced that the new notes contain several new features that were not there earlier and would be difficult to forge. Other measures taken by the RBI to enable detection of forged notes are to improve awareness among the lay public on how to detect forged notes and to encourage shops and retail outlets to instal note-sorting machines. All banks are mandated to sort out the notes received by them over the counter through a note sorting machine that can detect forgery and ensure that they issue only genuine notes back into circulation.

Usha Thorat is a former deputy governor of the Reserve Bank of India

Monetary Policy Committee, 2016

The Hindu, June 28, 2016

The Centre brought the Monetary Policy Committee (MPC) one step closer to reality by notifying the changes made to the Reserve Bank of India (RBI) Act in June 2016.

The six-member Committee — tasked with bringing “value and transparency to monetary policy decisions” — will comprise three members from RBI, including the Governor, who will be the ex-officio chairperson, a Deputy Governor and one officer of the central bank.

Composition

The other three members will be appointed by the Centre on the recommendations of a search-cum-selection committee to be headed by the Cabinet Secretary.

“These three members of MPC will be experts in the field of economics or banking or finance or monetary policy and will be appointed for a period of four years and shall not be eligible for re-appointment,” according to the statement.

The Committee is to meet four times a year and make public its decisions following each meeting.

Policy reviews

2014: RBI shifts to bi-monthly policy review

TIMES NEWS NETWORK

The Times of India

Mumbai: The Reserve Bank of India will shift to a system of announcing its policy statement bi-monthly with the first such policy being announced on April 1, 2014. Bankers widely expect RBI to hold on to rates given that pressure on inflation is easing and the rupee has also been firming up.

Until the mid-90s, RBI had only two monetary policy reviews a year. After Bimal Jalan took charge as governor in 1997, he introduced quarterly reviews. His successor Y V Reddy introduced a mid-quarter review, which resulted in an announcement every 45 days.

A panel headed by RBI deputy governor Urjit Patel had recommended that the central bank monetary policy committee meet every two months to review rates.

Reserves

What is the appropriate level of reserves?

November 16, 2018: The Times of India

HOW MUCH RESERVES ARE ENOUGH FOR RBI?

RBI has accused the govt of trying to raid its coffers to bolster its revenues, which is one of the flashpoints in high-profile turf battle. The finance ministry has rejected the claim and suggested that there is a need to discuss how much capital RBI needs to deal with contingencies

Clarification

The Centre clarified that it wasn’t going to raid Reserve Bank of India’s reserves for Rs 3.6 lakh crore of ‘free money’ but it also said that it was in discussion to fix ‘appropriate economic capital framework’ of the central bank

Conditions apply

The framework the government is talking about is basically about how much capital RBI needs for its operations and how much of the surplus it should pass on to the government. This essentially means that Centre may not have asked for a specific amount (Rs 3.6 lakh crore) but it wants to ‘fix’ the process and that may end up giving it even more than that

Why fix?

The government believes that RBI is sitting on much higher reserves than it actually needs to tide over financial emergencies that India may face. Some central banks around the world (like US and UK) keep 13% to 14% of their assets as a reserve, compared to RBI’s 27% and some (like Russia) more than that. Each central bank assesses its risk and reserve requirements according to its past experience and future likelihood of the scale and kind of crisis

Old problem

Economists in the past have argued for RBI releasing ‘extra’ capital that can be put to productive use by the government. Former chief economic adviser Arvind Subramanian had argued for it (he had mentioned Rs 4 lakh crore). The Malegam Committee estimated the excess (in 2013) at Rs 1.49 lakh crore

How much?

RBI’s held total assets worth Rs 36.17 lakh crore on June 30 on its balance sheet. At 27% of this, the central bank would have around Rs 9.7 lakh crore as reserves. If it were to bring it down to 14% as the government probably wants, it would be left with about Rs 5 lakh crore. That means an excess capital of Rs 4.7 lakh crore to be handed over to the government

Why now?

With a general election looming early next year, analysts believe the cash-strapped government is trying to stimulate the economy with a big public spending spree to woo voters, says a report

What next?

The RBI governor, Urjit Patel, some say, has two options: to agree to his employer (the government) or leave the job. RBI deputy governor, in his (now controversial) speech, had referred to the resignation of Argentina’s central bank head for a similar reason of refusing government’s order to transfer the central bank’s reserve to pay foreign debt

As in 2018, Mar

Mayur Shetty, RBI saves its current reserves, but govt expects more next year, November 20, 2018: The Times of India

RBI's reserves as on March 31, 2018
From: Mayur Shetty, RBI saves its current reserves, but govt expects more next year, November 20, 2018: The Times of India

The Reserve Bank of India (RBI) has managed to protect its Rs 9.7-lakh-crore reserve kitty with its board agreeing to have a panel determine how much capital it needs to maintain and how much can be distributed from future surplus to the government. The Centre has also not lost as prospects of a higher share of future surplus allows it to budget for a larger chunk of revenues from the central bank in its ‘Vote on Account’ for next year.

“The RBI board decided to constitute an expert committee to examine the Economic Capital Framework (ECF), the membership and terms of reference of which will be jointly determined by the government and the RBI,” the central bank said in a statement.

The ECF refers to a formula for deciding the capital adequacy ratio for RBI. This is a positive development for those fearing that the government will tap into existing reserves of the central bank.

Of the existing reserves, a bulk of the funds are in contingency funds and in revaluation reserves. The contingency reserves, by definition, cannot be touched except in a crisis. To tap revaluation reserves, the RBI will have to sell assets and shrink its balance sheet. This will upset the money supply in the economy. Even if the to-be-constituted committee recommends higher transfers to government, it will result in lesser accretion to reserves and will not deplete the RBI’s balance sheet.

It was earlier speculated that the Centre might press for the RBI transferring a third of its Rs 9.7-lakh-crore total reserves to the government. The speculation was based on some reports stating that RBI holds over Rs 3 lakh crore of surplus reserves.

A higher surplus transfer for 2018-19 is likely because the central bank’s earnings are expected to be much more robust than 2017-18. In the current fiscal, the RBI has been intervening heavily in the foreign exchange and bond markets. The central bank’s earnings soar whenever there is forex volatility as it ends up making profits while selling dollars. For 2017-18, the RBI transferred a dividend of Rs 50,000 crore to the government.

Former governor Raghuram Rajan had proposed a formula-based model for fund transfer to the government. He had also warned against liquidating assets to transfer funds to government, stating that to neutralise the impact, the RBI would have to conduct money market operations by selling bonds. If the government had to issue fresh bonds in order to receive money from the central bank, it would be in the same position as before.

2018: the position in other countries

Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017
From: Sidhartha, November 21, 2018: The Times of India

See graphic:

Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017

@@ Line 1: / Line 1: @@
-[[File: Indian badminton players at the worlds.jpg|Indian badminton players at the Worlds as on August 16, 2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=16_08_2015_020_065_015&type=P&artUrl=SAINA-KNOCKS-ON-HISTORYS-DOOR-16082015020065&eid=31808 ''The Times of India'']|frame|500px]]
+[[File: Governors of RBI since 1991.jpg|Governors of RBI since 1991; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=20_06_2016_017_024_002&type=P&artUrl=RAJANS-REPORT-CARD-IN-GOVERNORS-CLASS-20062016017024&eid=31808 ''The Times of India'']|frame|500px]]
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@@ Line 9: / Line 10: @@
 See [[examples]] and a tutorial.</div>
 |}
-[[Category:India|B]]
+[[Category:India|R]]
-[[Category:Sports|B]]
+[[Category: Economy-Industry-Resources|R]]
+[[Category:Government |R]]
+[[Category:Name|Alphabet]]
-=INDIA’S LANDMARK SINGLES VICTORIES=
+=History=
-[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/08/10&PageLabel=29&EntityId=Ar02900&ViewMode=HTML The Times of India] 2013/08/10
+[https://rbi.org.in/History/Brief_History.html rbi.org]
-====PRAKASH PADUKONE====
-All England title 1980; Winner World Cup 1981; Commonwealth Games singles gold 1978; Bronze at World Championships 1983
-====SYED MODI====
-Commonwealth Games singles gold 1982; Bronze at Delhi Asian Games
-====PULLELA GOPICHAND====
-All England title 2001
-====APARNA POPAT====
-Runner-up World Junior Championship 1996; French Open 1998; Silver at Commonwealth Games 1998
-====SAINA NEHWAL====
-Bronze at London Olympics 2012; Gold at Commonwealth Games 2010; 17 major international titles
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=SAINA-AND-SINDHU-STUDY-IN-CONTRAST-20082016026026 ''The Times of India''], Aug 20 2016
+The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century.
-Manne Ratnakar
+The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.
-Saina's trademark clam on court helps her deal with pesky opponents who try to rattle her with body smashes and stares. Sindhu, on her part, doesn't like body smashes and would get easily rattled and concede points. It's because of this that she tended to lose many matches from winning positions.
+The Bank was constituted to:
-Saina, a proven champion, interestingly does not believe she is a natural stroke maker. She has herself admitted on a number of occasions that she lacked natural talent compared to some other players. Saina relies more on hard work and training and needs at least six to eight weeks to peak before a tournament.
+* Regulate the issue of banknotes
-====PARUPALLI KASHYAP====
+* Maintain reserves with a view to securing monetary stability and
-Bronze at Commonwealth Games 2010
-==== PV Sindhu====
-[[File: Badminton, P V Sindhu, Marin and Saina Nehwal.jpg|Badminton, P V Sindhu, Marin and Saina Nehwal; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=SAINA-AND-SINDHU-STUDY-IN-CONTRAST-20082016026026 ''The Times of India''], August 20, 2016|frame|500px]]
-Bronze at World Badminton Championships, China, 2013
+* To operate the credit and currency system of the country to its advantage.
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=SAINA-AND-SINDHU-STUDY-IN-CONTRAST-20082016026026 ''The Times of India''], Aug 20 2016
+The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts and public debt. The existing currency offices at Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore and Cawnpore (Kanpur) became branches of the Issue Department. Offices of the Banking Department were established in Calcutta, Bombay, Madras, Delhi and Rangoon.
-Manne Ratnakar
+Burma (Myanmar) seceded from the Indian Union in 1937 but the Reserve Bank continued to act as the Central Bank for Burma till Japanese Occupation of Burma and later upto April, 1947. After the partition of India, the Reserve Bank served as the central bank of Pakistan upto June 1948 when the State Bank of Pakistan commenced operations. The Bank, which was originally set up as a shareholder's bank, was nationalised in 1949.
-PV Sindhu has seized the opportunity to unleash her electric prowess as a shuttler on the greatest stage of all, eventually becoming the first female sportsperson to win a silver for India.
+An interesting feature of the Reserve Bank of India was that at its very inception, the Bank was seen as playing a special role in the context of development, especially Agriculture. When India commenced its plan endeavours, the development role of the Bank came into focus, especially in the sixties when the Reserve Bank, in many ways, pioneered the concept and practise of using finance to catalyse development. The Bank was also instrumental in institutional development and helped set up insitutions like the Deposit Insurance and Credit Guarantee Corporation of India, the Unit Trust of India, the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development, the Discount and Finance House of India etc. to build the financial infrastructure of the country.
-Sindhu has numerous chinks in her defence but in 2016, she has worked hard on reducing the chinks. She looks solid in defence now and has sur prised many with her retrieving ability . Saina likes faster court conditions -when the shuttle is moving fast between the courts it will be advantage Saina. Sindhu prefers the opposite, she likes if the shuttle is slow. That is why in Asian conditions, where they use air conditioners, the shuttle moves well and Saina performs better. In Brazil, however, the shuttle moved slower and Sindhu was on a roll.
+With liberalisation, the Bank's focus has shifted back to core central banking functions like Monetary Policy, Bank Supervision and Regulation, and Overseeing the Payments System and onto developing the financial markets.
-At the Olympics 2016, Sindhu has been a revelation. She was cool like a cucumber even in the gold medal match and hardly ever seemed annoyed throughout her memorable campaign.
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=A-bank-central-to-monetary-policy-22082016013031 ''The Times of India'']
-Standing tall at 5'11“, Sindhu likes to pack her shots with a lot of power. Saina, however, is a rally player who wears down the opponent and pounces on the mistakes of others.
+'''Which was India's first central bank?'''
-=International titles, victories=
+The first central bank was the Imperial Bank of India formed in 1921 by merging the Presidency banks. The bank was further enlarged by the merger of several banks owned by princely states like Jaipur, Mysore and Patiala.
-== Asian Junior Championship==
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F07%2F23&entity=Ar03521&sk=710D3FFB&mode=text  July 23, 2018: ''The Times of India'']
+The Imperial Bank of India was supposed to perform three functions -commercial banking, central banking and banker of the government. By 1930, there were 1,258 banking institutions in the country registered under the Companies Act. Of these, the Imperial Bank was the most dominant.The global economy was passing through the Great Depression and this resulted in the failure of many banks in India as well. Various committees set up to study the Indian banking system recommend ed the formation of a central bank which was free from commercial banking. In most modern economies, central banks were formed largely to tackle the failure of unorganised banking by enforcing regulatory safeguards.
-''' Gold '''
+'''When was the Reserve Bank of India formed?'''
-: Gautam Thakkar won the boys singles gold
+The bank was formed in 1935 by the Reserve Bank of India Act, 1934. The objectives included being the banker of the government and other banks, to maintain the exchange ratio and to regulate issue of bank notes. The overall objective of the bank was to secure monetary stability.
-: [[PV Sindhu]] was the first girl to achieve this honour.
+'''What are its current roles?'''
-: Lakshya Sen toppled top seed and reigning world junior champion Kunlavut Vitidsaran to become the first Indian boy after 53 years to win the Asian Junior Championship, in Jakarta. The 16-year-old needed just 46 minutes to beat Kunlavut 21-19, 21-18 in the final.
+The bank formulates, implements and monitors India's monetary policy. It monitors and regulates the financial system through prescribing broad parameters of banking operations to ensure public confidence in the system and protect depositors' interests.The bank also manages foreign trade and monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency .
-''' ''Other medals '' '''
+'''How is the bank governed?'''
-'''2009''': Mixed doubles pair of Pranaav Chopra/Prajakta Sawant claimed bronze.
+Like other central banks, the RBI too is an independent entity within the government.It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and not more than four deputy governors as official directors. There are also 10 directors nominated by the government, two government officials and four directors -one each from local boards -who act as non-official directors.
-'''2011''': Sameer Verma won silver
+=Reserve Bank of India Act of 1934=
+==What is Section 7 of the Reserve Bank of India Act of 1934==
+[[File: Sec 7 of the Reserve Bank of India Act of 1934.jpg|Sec 7 of the Reserve Bank of India Act of 1934 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F31&entity=Ar00501&sk=13998587&mode=text  Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: ''The Times of India'']|frame|500px]]
-'''2011''': Sindhu clinched bronze.
+'''See graphic''':
-'''2012''': Sameer Verma won bronze.
+''Sec 7 of the Reserve Bank of India Act of 1934''
-=Premier Badminton League=
-==2018: Saina, Sindhu, Srikanth, Marin get the highest prices==
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F09&entity=Ar02611&sk=461A32F9&mode=text  October 9, 2018: ''The Times of India'']
+==Sec 7 application considered in 2018, Oct==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F31&entity=Ar00501&sk=13998587&mode=text  Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: ''The Times of India'']
-PV Sindhu, Saina Nehwal and world champion Carolina Marin were the expected top buys at the Premier Badminton League season four auction, fetching the maximum price of Rs 80 lakh each here on Monday. India’s top male shuttler Kidambi Srikanth too was picked for Rs 80 lakh at the auction.
-The unexpected one was rising doubles star Satwiksairaj Rankireddy who was the highest paid non-Icon Indian player with Rs 52 lakh. With all players returning to the auction pool for the first time since 2015 and no Right to Match (RTM) card at teams’ disposal, the exercise gained more significance with franchisees looking to get the combination right besides their ideal Icon player.
+''Is Said To Have Referred To The Law Recently''
-Indonesia’s Tommy Sugiarto was the highest paid non-Icon Player with Delhi Dashers splurging Rs 70 lakh for his services. The Delhi outfit won a tense battle with two other teams to acquire the World No 11, paying Rs 40 lakh above his base price.
+No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history.
-Icon players Marin and Sindhu were the obvious choice for most teams. At least four teams raised the prize purse to Rs 80 lakh, the maximum limit a team can bid for a player, before the players got assigned to the teams by a draw of lots.
+It is seen as an instrument of last resort, a direct order from the government of the day to the central bank to carry out its wishes (see graphic, ‘In Public Interest’).
-Among the non-Icon Indians, Rankireddy was the top draw as Ahmedabad Smash Masters outbid the Hyderabad Hunters to secure the youngster for Rs 52 lakh, a massive jump from his base price of Rs 15 lakh.
+The Modi government, despite its growing frustration with the Urjit Patel-led RBI, has resisted suggestions that it invoke Section 7 to increase liquidity, ease pressure on banks and businesses, and boost economic growth. But there are indications that via recent communications, it has initiated a consultative process with the RBI in three areas of concern and while doing so, has mentioned Section 7 without actually invoking it.
-The fourth season of the PBL will begin in Mumbai on December 22 while the final will be held in Bengaluru on January 13, 2019. A ninth team, Pune7 Aces, has been added this year and Marin will be playing for them.
-=Statistics, year-wise=
+'''Was fear of Section 7 behind RBI dy guv’s attack on govt?'''
-=2014:Watershed year=
+The government is learned to have recently initiated a consultative process with the RBI in three areas of concern – power sector loans, ‘prompt corrective action’ (PCA), and special dispensation for micro-small and medium enterprises (MSMEs) – and while doing so, mentioned Section 7, without actually invoking it. The Section says, “The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest.”
-[http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=UNPRECEDENTED-LEAP-IN-BADMINTON-27122014015005 ''The Times of India'']
+The government’s move is significant as such a consultative process could potentially lead to the government issuing directions should the logjam persist. The issue of invoking Section 7 first came up during a hearing before the Allahabad high court in a case filed by the Independent Power Producers challenging the RBI’s February 12 circular which did away with all restructuring schemes for loans in default. After the counsel for RBI pointed out that legally the government could issue directions to the central bank, the court in its ruling in August said such a move could be considered.
-Dec 27 2014
+Historically, whenever governors have spoken about the independence of the central bank, they have never failed to point out that Section 7 has never been used.
-''' UNPRECEDENTED LEAP IN BADMINTON '''
+A senior official in the government said there has so far been no move to invoke Section 7. Another person, when asked, said, “Communication between the government and the central bank is sacrosanct and cannot be disclosed.”
-Amit Kumar Das
+There is some speculation that it was the government’s mention of section 7 that was the trigger for deputy governor Viral Acharya’s outburst against the government last Friday. While he did not make any reference to the Section, he did speak about how the government could undermine the independence of the central bank by ‘blocking or opposing rule-based central banking policies and favouring instead discretionary or joint decisionmaking with direct government interventions’.
-It turned out to be a watershed year for Indian badminton as the home shuttlers clinched no less than eight individual titles and also broke new grounds in team championships, making India a dominant force at the international stage
+The government wants norms for non-performing assets in the power sector – which currently require companies to be referred to bankruptcy courts -- to be relaxed. Once admitted, the companies have to be either sold or liquidated.
-Saina Nehwal and K. Srikanth clinching titles at China Super Series Premier and P.V. Sindhu bagging five bronze, including a World Championship medal, besides the historic bronze medals at Uber Cup and Asian Games, were the highlights of the year in which Indian badminton achieved unprecedented success at the global platform.
-If Saina led the resurgence of Indian badminton in the last few years, the year also saw the emergence of younger stars, who made it a terrific season with the help of their stupen dous performance.
-While Saina scooped three titles, Srikanth, Parupalli Kashyap, Aravind Bhat, Sindhu and H.S. Prannoy -all laid their hands on the crown at least once in the year gone by.In fact, Saurabh Verma and P.C. Thulasi also won titles in the International challenge category.
+Its concern about 'prompt corrective action' is that the classification of PCA has placed lending and expansion curbs on 11 public sector and one private bank, which it believes is choking fund flows to several sectors. The government has also been worried about the fate of MSMEs, and is keen that the definition of bad loans be softened.
-It was yet again Saina who set things in motion with a victory at the India Grand Prix Gold, which finally broke her long title drought. The Indian ace added two more titles to her kitty, clinching the Australia Super Series at Sydney in June and China Super Series Premier at Fuzhou in November.
+A broader concern is about the liquidity situation which has taken a turn for the worse after a series of defaults by IL&FS in September. The defaults have had a cascading impact — MFs that had invested in IL&FS debt were hit, corporates who had put shortterm funds in MFs turned cautious, and the funds themselves turned cautious about putting money in financial companies.
-While Saina blew hot and cold, teen sensation Sindhu continued to make big strides in world badminton with her performance, which saw her reach the finals of India Grand Prix Gold first in Lucknow and then winning the bronze at the Asian Badminton Championship in Gimcheon.
+=Central board of directors=
+==The Central Board==
+The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.
-In fact, Indian women's doubles pair of Jwala Gutta and Ashwini Poppanna also made their presence felt by clinching the bronze in the same tournament in April.
+•	Appointed/nominated for a period of four years
-Next month, India hosted the prestigious Thomas and Uber Cup Finals for the first time and Saina and Sindhu ensured that it turned out to be a memorable one as they shepherded the women's team to a historic bronze.
+Constitution:
-Sindhu had a golden chance of winning the Commonwealth Games women's singles title in July but the Indian had to settle for a bronze when she lost to Michelle Li of Canada.
+o	Official Directors
-=2014: Shuttlers: Kidambi Srikanth, Saina Nehwal, PV Sindhu =
+♣	Full-time : Governor and not more than four Deputy Governors
-[http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=SCALING-NEW-FRONTIERS-31122014030010 ''The Times of India''], Dec 31 2014
-The fabulous feats of Indian shuttlers made 2014 the breakout year for Indian badminton. But no one could match the achievement of Kidambi Srikanth. Defying all predictions, the 21-year-old won the China Open Super Series, beating multiple World and Olympic champion Lin Dan in the final. He finished the year ranked No. 4 in the world. After a barren 2013, Saina Nehwal made an impressive comeback this year. She thrashed World Champion Carolina Marin of Spain to clinch the Australian Super Series and then grabbed the China Open, beating the Chinese on way to the final. PV Sindhu bagged bronze in Glasgow and helped the Indian team claim its first-ever Asiad and Uber Cup bronze.
+o	Non-Official Directors
-=2015=
+♣	Nominated by Government: ten Directors from various fields and two government Official
-==Garaga, Rankireddy win Badminton Asia Championships boys doubles==
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Jayaram-retains-Dutch-Open-title-12102015025070 ''The Times of India''], October 12, 2015
-The budding doubles duo of Krishna Prasad Garaga and Satwiksairaj Rankireddy clinched boys doubles gold in the Badminton Asia Championships in Kudus, Indonesia Jayaram outclassed Raul Must of Indonesia in straight games 21-12, 21-18.
+♣	Others: four Directors - one each from four local boards
-Under-17 boys Krishna and Satwik, who train at the Pullela Gopichand Badminton Academy , trounced Jun Hau Leong and Fong Hau Sim of Malaysia 21-16, 21-15 in straight games. Such was the domina tion of these Hyderabadi shuttlers that they did not even lose a single game in the entire tournament. Not only that, they were not even forced to save a game point. In 2014, KrishnaSatwik claimed bronze at this Continental meet.
-==October 2015: Srikanth climbs to fifth in rankings; Saina is second==
+Functions : General superintendence and direction of the Bank's affairs
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=INDIA-FILE-Srikanth-climbs-to-fifth-in-rankings-30102015034050 ''The Times of India''], Oct 30 2015
-'''Srikanth climbs to fifth in rankings; Saina is second'''
+===The Board, as in 2018===
+[[File: The RBI’s Central board of directors, as in 2018.jpg|The RBI’s Central board of directors, as in 2018. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00314&sk=1E299772&mode=text  Sidhartha, December 11, 2018: ''The Times of India'']|frame|500px]]
-Top Indian male shutler Kidambi Srikanth climbed up place to fifth, while Saina Nehwal remained static on No. 2 in the atest Badminton World Federa ion (BWF) rankings released on Thursday . Srikanth gained a spot n the men's singles ranking.
+'''See graphic''':
-==Manu-Sumeeth bag GP title in Mexico==
+''The RBI’s Central board of directors, as in 2018''
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Manu-Sumeeth-pair-bags-maiden-GP-title-in-22122015026035 ''The Times of India''] Dec 22 2015
+==Local Boards==
+•	One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi
-Manne Ratnakar
+Membership:
-Hyderabad
+•	consist of five members each
-Ending a five-year drought, the fast rising doubles combination of Manu Attri and Sumeeth Reddy claimed their maiden Grand Prix crown with a 22-20, 21-18 victory over BodinIssara and NipitphonPuangpuapech of Thailand in the Mexico Open final on Sunday .
+•	appointed by the Central Government
-The duo, who trains at the Pullela Gopichand Academy here, faced a stiff resistance in the first game as the Thais saved four game points from 1620 before the Indians claimed it. In the second, the Indians got off to a brisk start and maintained a healthy lead over their rivals right throughout.
-After Olympians Rupesh Kumar and Sanave Thomas won the Bitburger Open in 2010, this is the best ever performance by an Indian men's doubles team. “This is a great win for both of us.We've worked really hard and this is the result of our hard work. We would like to thank our coach Pullela Gopichand, doubles coach Kim Tan Her and BAI officials for supporting us. Many thanks to our parents, it's because of their prayers and blessings we are here,“ Manu told TOI from Mexico City on Monday .
-The players, who have been consistent this year, were close to clinching their first GP title twice before. They missed out winning the titles in US Grand Prix in June and Dutch Open in October despite dishing out some inspired performances in the initial rounds. “It turned out to be a good year for us. And finishing off with a title is amazing. We started confidently . It was a bit tricky in the final, it was all about speed and tactics,“Sumeeth said.
-=2016=
+•	for a term of four years
-==2016: Asia Championship==
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Shuttlers-lose-in-Asia-Cship-semis-21022016028036 ''The Times of India''], Feb 21 2016
-Manne Ratnakar
+Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.
-'''Shuttlers lose in Asia C'ship semis'''
+==Why RBI is not comfortable with active boards==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F06&entity=Ar02101&sk=3514EE46&mode=text  Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: ''The Times of India'']
-HS Prannoy , saviour of the hosts for the last two days, could not repeat the magic as his team bowed out of the tie much before his arrival, losing 1-3 to Indonesia in the semifinals of the Badminton Asia Team Championships at the Gachibowli Indoor Stadium.
+[[File: Industrialists on RBI Board.jpg|Industrialists on RBI Board <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F06&entity=Ar02101&sk=3514EE46&mode=text  Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: ''The Times of India'']|frame|500px]]
-With this loss Indian men bagged the bronze medal, their first in last three decades.
-Though Kidambi Srikanth gave a solid start to his team, the hosts lost the next three ties and crashed out of the tournament. After winning the first game without much difficulty against in form Tommy Sugiarto, Srikanth was unlucky to lose the closely-fought second game. However, the top ranked Indian shifted gears in the decider and played an attacking game to oust Tommy 21-14, 23-25, 21-9.
+''Bizmen In Rule-Debating Role Raise Conflict Of Interest Issue''
-Doubles pair of Manu Attri and Sumeeth Reddy proved no match for Mohammad Ahsan and Hendra Setiawan 21-11, 2110. In the second singles, world No.25 Ajay Jayaram tried hard before going down to Anthony Ginting 15-21, 20-22.
+An active board seeking a say in bank regulation has thrown up questions about conflict of interest, given the presence of industrialists on the board of the Reserve Bank of India (RBI).
-==2016: Uber Cup==
+Traditionally, the RBI board had a strong presence of eminent industrialists like Ratan Tata, N R Narayana Murthy and Azim Premji. It has also included chiefs of highly indebted groups like K P Singh of DLF and G M Rao of the GMR Group. However, there was never any conflict of interest as the minutiae of bank regulation or monetary policy never came up to the board. That’s because, until now, the RBI board only gave a broad direction that the central bank should take.
-===Women===
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Ruthvika-steals-the-show-as-Indian-women-enter-20052016034034 ''The Times of India''], May 20, 2016
-'''Quarterfinals ''' When the top gun, misfired youngster RuthvikaShivani came to the rescue with a stupendous display to assure her team of a bronze with a 3-1 victory against Thailand in the Uber Cup quarterfinals on Thursday.
+But in the October 23 board meeting, some directors are understood to have turned vocal on a few RBI regulations. According to a senior former central banker, there would be conflict of interest if these businessmen had advance information of RBI’s regulations. He was reacting to reports that some directors wanted the RBI central board to play a more active role and deliberate on regulations. There is talk of the board wanting to push through five decisions, which includes issues such as regulatory forbearance and allowing weak banks to lend, in the forthcoming RBI board meet on November 19.
-This will be only the second medal for India at this prestigious team event. Indian women had won bronze at the last edition.
+Sources close to the central bank also point out that, unlike boards constituted under The Companies Act, the RBI Act 1934 grants the governor with powers that are concurrent with the board. They refer to clause 3 of the hotly debated Section 7 of the RBI Act. While the first clause confers powers on the government to give directions to the RBI, the third part indicates that the governor shares power.
-For a long time, Saina Nehwal had carried Indian hopes. But the off-colour Hyderabadi faltered on the day to give India a poor start. PV Sindhu, however, stepped up and put the campaign back on rails with a dominant 21-18, 21-7 victory against Busanan Ongbumrungphan.
+This clause 3 states, “Save as otherwise provided in regulations made by the central board, the governor and in his absence the deputy governor nominated by him in this behalf, shall also have powers of general superintendence and direction of the affairs and the business of the bank, and may exercise all powers and do all acts and things which may be exercised or done by the bank.” A source said, “The choice of the words ‘shall also have powers’ indicates that these are concurrent with the board.”
-JwalaGutta and Ashwini Ponnappa made it 2-1for with a 21-19, 21-12 win against PuttitaSupajirakul and SapsireeTaerattanachai.
+According to sources, the powers of the governor are reiterated in the Reserve Bank of India, General Regulations, 1949, which also addresses the issue of conflict of interest between board decisions and individual interests of directors. “You can imagine what would happen if an issue like the February 12 circular on recognition of non-performing assets came up to a board that included owners of highly indebted companies,” a source said.
-Ruthvika then proved her mettle. No one expected her to get past a tough opponent like NitchaonJindapol, the world No.25 who has been giving top shuttlers a tough time. She had even defeated PV Sindhu in January this year.Ruthvika came up with a stunning show and registered a 21-18, 21-16 victory . Leading 20-10, Ruthvika conceded eight points before winning the first game at 21-18.
+=How other central banks function=
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02204&sk=41DBD133&mode=text  Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: ''The Times of India'']
-=2017=
+[[File: The US government’s frictions with its central bank under President Trump.jpg|The US government’s frictions with its central bank under President Trump <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02204&sk=41DBD133&mode=text  Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: ''The Times of India'']|frame|500px]]
-[[File: Badminton Jan to June 2017a.jpg|Badminton Jan to June 2017 |frame|500px]]
-==The best players==
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F25&entity=Ar03915&sk=350FF6B5&mode=text  TOISA 2018 NOMINEES: BADMINTON, January 25, 2018: ''The Times of India'']
-''KIDAMBI SRIKANTH (World No. 3 )''
+'''The US Federal Reserve''': Like other central banks, the Fed is an independent government agency. It is accountable to the public and the US Congress. Members of the board of governors are appointed for staggered 14-year terms and the board chair is appointed for a four-year term. Elected officials and members of the administration are not allowed to serve on the board. The Fed does not receive funding through the congressional budgetary process. The financial statements of the Federal Reserve Banks and the board of governors are audited annually by an independent, outside auditor.
-Building on the promise shown during his run to the quarterfinals of the men’s singles at the 2016 Rio Olympics, Srikanth made it large last year. He won four Superseries titles in 2017, the most ever by an Indian, and moved to No. 2 in the BWF men’s singles rankings. Srikanth’s first title was the Indonesia Open, where he beat Japan’s
+'''The Bank of England (BoE)''': The BoE is owned by the UK government. It has specific statutory responsibilities for setting policy rates, carried out within a framework set by government but free from day-to-day political influence. Parliament gives specific goals and responsibilities. The government sets the target — which is 2%. A panel meets to agree interest rate decisions eight times a year. There are other panels on other issues, which ensures that the financial system is working properly to serve UK households and businesses. The BoE is answerable to both parliament and the public.
-''PV SINDHU (World No. 3)''
-After claiming a breakthrough silver medal at the 2016 Rio Olympics, Sindhu lived up to her billing as the queen of Indian badminton this year by winning two Superseries titles, a silver medal at the Badminton World Championships and another at the BWF World Superseries Finals. Her first Superseries win came in April, when she beat Olympic champion Carolina Marin 21-19, 21-16 to win the India Open for the first time. Days later, she rose to a careerhigh No 2 in the BWF women’s singles rankings. After claiming a silver medal at the Badminton World Championships, only India’s second ever, Sindhu went on to win her second Superseries in October Kazumasa Sakai 21-11, 21-19, and a week later he vanquished the world and Olympic champion Chen Long in straight games 22-20, 21-16 to claim the Australia Open. Later, Srikanth became the second Indian after Prakash Padukone to win the Denmark Open and then created history by claiming the French Open. In addition, Srikanth also reached the final of the Singapore Open.
+'''European Central Bank (ECB)''': It manages the euro and implements monetary and economic policy for the EU. Probably the most independent of central banks, the ECB charter prevents it from backing any government. However, it is criticised as being non-independent because it is at the mercy of the governments of Europe’s creditor countries.
-when she became the first Indian to win the Korea Open. Her other title was the Syed Modi International Grand Prix Gold. Other close finishes came in the final of the National Badminton Championship and the Hong Kong Superseries, where she was runner-up both times.
+'''Bank of Japan''': It has a legal mandate to maintain price stability. The government is not allowed to sack the central bank governor or members of the board but parliamentarians have the right to appoint them. Bank regulation is done by the Financial Services Agency.
-''SAINA NEHWAL (World No. 10)''
-A successful, injuryfree year for the 2012 London Olympics medalist. Saina won a Grand Prix Gold, a bronze at the World Championships and her third national title. Won the Malaysia Masters Grand Prix - her 23rd title overall. Won a bronze medal at the Badminton World Championships having reached her recordbreaking seventh consecutive quarterfinal. Beat Olympic gold medal winner and two-time world champion Carolina Marin 22-20, 21-18 in round one of the Denmark Open.
+'''People’s Bank of China''': The Chinese central bank is subservient to the communist party and its national objectives. It is responsible for mainlining growth, price stability, currency stability and health of financial sector.
-''HS PRANNOY (World No. 10)''
+'''Central Bank of Argentina''': RBI deputy governor Viral Acharya used the example of the constitutional crisis in Argentina. The Cristina Fernandez-led government in 2010 attempted to raid the central bank’s reserves, resulting in bond yields shooting up and foreign investors exiting.
-His most successful year ever, Prannoy won a Grand Prix Gold, reached the semifinals of two Super Series and won the national title for the first time. Claimed his third Grand Prix Gold title by beating compatriot Parupalli Kashyap 21-15, 20-22, 21-12 in the final of the US Open.
-Reached the semi-finals of the Indonesia Open Super Series and the French Open. Became the first Indian to beat the big four of world badminton: Taufik Hidayat (2013), Lin Dan (2015), Chong Wei (twice in 2017) and Chen Long (2017). Achieved a career-best position of No. 10.
+'''Turkey Central Bank''': The sharp depreciation in emerging market currencies was seen to have been triggered by the fall in the Turkish lira. The collapse of the lira has been attributed to Turkish president Recep Tayyip Erdogan taking control of Central Bank of the Republic of Turkey and preventing it from raising rates.
+=The post of Governor=
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=No-age-cap-fixed-rules-for-RBI-top-20062016017020 ''The Times of India''], June 20, 2016
-''B SAI PRANEETH (World No. 16)''
-Having never made it past the quarters of a Super Series of a Grand Prix Gold tournament, Sai beat Kidambi Srikanth in the final of the Singapore Open. In this tournament, he also beat Denmark’s Emil Holst, world No. 23 Qiao Bin, eighth seed Tanongsak Saensomboonsuk and Korea’s Lee Dong Keun to meet Srikanth in the first all-Indian Super Series final. Won his second title of the year in June, beating Indonesia’s Christie Jonatan 17-21, 21-18, 21-19 to clinch the $120,000 Thailand Open. Runnerup at the Syed Modi Grand Prix.
+'''Who can be an RBI governor?'''
-==A watershed year==
+Unlike the appointment of fo ur deputy governors, there are no fixed rules. But most RBI governors have been civil servants (11), followed by economists (five). There has also been one banker, an insurance company executive and one RBI employee who have gone on to be the governor.
-[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/PrintArticle.aspx?doc=TOIDEL%2F2017%2F12%2F28&entity=ar02400&ts=20171228005013&uq=20171213034334&mode=text  Action Replay 2017: BADMINTON, December 28, 2017: ''The Times of India'']
+'''How are candidates selected?'''
-''2017 Was A Watershed Year For Indian Badminton As Players Broke New Ground, Writes'' '''M Ratnakar'''
+In the past, candidates were shortlisted by the government, and the Prime Minister appointed the governor in consultation with the finance mi nister. On some oc casions, some of the candidates we re called for an in LEARNING formal interaction WITH THE TIMES with the finance mi nister (D Subbarao was appointed through this route) although the final decision was taken by the PM. Now, the government has tasked a committee headed by the Cabinet secretary to shortlist candidates and the final decision will be taken by PM Narendra Modi.
-If Saina Nehwal’s hat-trick of titles in 2010 was the catalyst which propelled Indian badminton to a different plane, 2017 has proved to be a watershed year for the sport as Kidambi Srikanth led the boys’ victory parade with four Super Series titles in a calendar year. Since 2010, the sport has witnessed a spiralling success rate every year. The Olympic medal came in 2012 with Saina’s bronze and a podium finish at the World Championships became a regular feature thereafter.
+'''Is there an age cap or are some qualifications stipulated?'''
-Sindhu’s Olympic silver at the 2016 Olympic Games catapulted the game to new heights of popularity.
+No, there is neither an age restriction nor qualifications are specified in the law. Governments have opted for those with understanding of overall economy , the financial sector as well as those familiar with th functioning of the government
-However, 2017 has seen greater performances from the Indian shuttlers as 13 major titles have been won by seven different players, apart from PV Sindhu’s silver and Saina’s bronze at the World Championships. Sindhu’s one hour 50-minute marathon against Nozomi Okuhara of Japan in the Worlds final will go down in history as an epic encounter.
+'''What is the RBI governor' tenure?'''
-Never in the past had so many Indian players figured among the winners’ circle. Until 2017, the success stories have been confined to Saina, Sindhu and Srikanth but this year ‘so-called fringe players’ like SAI Praneeth, Sameer Verma, HS Prannoy and even doubles pair of Pranaav Chopra and Sikki Reddy have ensured that the Indian flag flutters with pride at various international events. For a change the boys have leapt past the girls and cornered more glory in 2017. Sindhu won two Super Series titles —India Open and Korea Open — and capped the year with a silver at the year-end Finals in Dubai.
+The RBI Act allows the government to specify the term but the ? tenure cannot exceed five years, with a possibility of reappointe ment. In recent years, only S Venkitaramanan, who spent two years as RBI governor, has had a shorter stint than Raghus ram Rajan.
-But the year belonged to Srikanth and Co, who have virtually dominated the men’s singles with élan. The Indian boys were everywhere in 2017, winning titles, stunning champions and dominating the men’s singles category. Sameer Verma started it by trumping SAI Praneeth at the Syed Modi Grand Prix Gold final in January. Thereafter, SAI Praneeth took charge by pocketing his first Super Series at the Singapore Open in April. Interestingly, here too, Praneeth’s opponent was none other than Srikanth.
+=Selection of Governor, Dy. Governor=
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=In-a-first-panel-to-list-RBI-guv-11062016001061 The Times of India], Jun 11 2016
-Praneeth also clinched the Thailand Open Grand Prix Gold in June. A fortnight later Srikanth triumphed in the Indonesia Open, the richest Premier event of the year. The 24-year-old went on to clinch back-toback titles, a first in his career, by emerging victorious at the Australian Open Super Series the very next week.
+Rajeev Deshpande
-While Indian fans were busy celebrating the unexpected success of their boys, experts have observed a fascinating trend behind these stupendous performances. The Hyderabad boys have been assisting each other in the victories as if they have learnt the art of ‘hunting in packs’.
+In a break from tradition, the government has tasked a selection committee headed by cabinet secretary P K Sinha with shortlisting candidates for Reserve Bank of India governor -a decision that was taken earlier by the Prime Minister in consultation with the finance minister.
+In the past, chiefs of other regulatory bodies -including insurance, pension and Sebi -have been shortlisted by search committees. But this will be the first time the RBI governor will be appointed similar ly, signalling a major shift in government stance and ending the special treatment given to central bank chiefs. The decision to route the RBI governor's appointment through the financial sector regulatory appointment search committee (FSRASC) seems intended to cool speculation over Raghuram Rajan being considered for a second term.
-At the Indonesian Open, HS Prannoy had stunned Malaysian legend Lee Chong Wei and Olympic champion Chen Long to clear the path for his training partner Srikanth. Later, Prannoy said that he took tips from seasoned campaigner Parupalli Kashyap on how to beat the Chinese superstar. Prannoy lost to Kazumasa Sakai in the semifinals but passed on some key information to Srikanth, who defeated the Japanese shuttler in the final.
+The FSRASC, set up in 2015, had interviewed candidates for Sebi chief. In February 2016, the government ignored its recommendation and reappointed U K Sinha for a year. A part from the cabinet secretary, the committe comprises additional principal secretary to PM P K Mishra, who is a permanent government nominee, and three outside experts -Rajiv Kumar of Centre for Policy Research, Manoj Panda of the Institute of Economic Growth and Bimal N Patel from Gujarat National Law University. A finance ministry representative will be a special invitee. The panel's recommendation will be sent to the appointments committee of cabinet headed by the PM, which will decide on the governor.
-Even at the Denmark Open in October, Prannoy helped Srikanth by ousting Lee Chong Wei in the second round itself. With easier opponents to negotiate at the latter stages, Srikanth claimed his third Super Series title by defeating Korean veteran Lee Hyun Il in the final. The next week at the French Open, Prannoy ousted Lee Hyun in the first round before going down to Srikanth in a keenly-contested semifinal. By claiming top honours in Paris, Srikanth became the fifth shuttler in badminton history to win four Super Series titles in a calendar year. Incidentally, these were also Srikanth’s second back-to-back titles.
+Going by the current thinking in official circles, a second term for Rajan could well be on the cards despite occasional reports that put him at cross-purposes with the government over issues like rate cuts or `Make in India'. At the same time, the government does not seem keen to imbue the appointment with a greater profile of attention. The committee route would be in sync with PM Narendra Modi's remark that the appointment is an “administrative decision“ that will be taken closer to September when Rajan's term ends.
-It is no secret that the dexterous efforts of Pullela Gopichand is behind their success and the newfound vigour. All these players hail from his academy and have been with him since their childhood.
+The committee's recomendation for RBI deputy governor was a break from past practice as previously, the head of the regulatory body presided over the selection committee. This time around, the RBI governor was a member of the FSRASC.
-About five years back, when Saina and Sindhu were making all the headlines, Gopichand had predicted that the boys too will replicate the girls’ success stories soon. But very few took him seriously at that time. However, once Srikanth burst on the scene with a sensational mauling of Lin Dan in the China Open finals in 2014, people began to notice that the boys were coming to the party.
+The process of making top-level appointments to regulatory bodies has been problematic, with the choices often being seen to be politically influenced. Even with the committee-bound process, the choice for sensitive posts will no doubt be vetted by the political authority. But the decision to make FSRASC the recommending body that could well put up a single name instead of a short list for a regulator is aimed at reducing discretion and putting all such bodies on a par.
-The coach, who is building Indian badminton brick-by-brick, has immense faith in the abilities of his players and is always confident about breaching the difficult barriers. “In my playing days many used to tell us that we can never reach the level of the Chinese. But I always believed that if we have the facilities in place we can achieve a lot. I am only putting a system in place and I am not surprised with these results,” Gopichand said.
+=Salary and perquisites of RBI governors=
+==2016: Urjit Patel’s package==
+[http://timesofindia.indiatimes.com/business/india-business/RBI-governor-Urjit-Patel-gets-Rs-2-lakh-a-month-pay-no-support-staff-at-home/articleshow/55788608.cms  December 4, 2016: The Times of India]
-Gopichand changed the landscape of badminton but the Dronacharya awardee is yearning for more. He has a few budding shuttlers who are aspiring to follow the footsteps of their illustrious seniors.
+''' ''RBI governor Urjit Patel gets Rs 2 lakh a month pay, no support staff at home'' '''
-But despite these fabulous feats, the bigger trophies like Olympic gold, World Championships crown and All England are missing from the cupboard.The only way the forthcoming years can beat the success of 2017 is if the shuttlers bring these elusive trophies home.
+'''HIGHLIGHTS'''
-===The main stars===
+RBI governor Urjit Patel gets a little over Rs 2 lakh as salary
-[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/PrintArticle.aspx?doc=TOIDEL%2F2017%2F12%2F28&entity=ar02404&ts=20171228005013&uq=20171213034334&mode=text  M Ratnakar, Smashing success: India ruled the courts, December 28, 2017: ''The Times of India'']
+RBI governor Urjit Patel gets a little over Rs 2 lakh as salary and has not been provided with any support staff at his residence, the central bank has said.
-It wasn’t just all about Srikanth and Sindhu. Prannoy and Praneeth made heads turn too
+Patel, who took over as RBI Governor in September+ , is presently in possession of the bank's flat (Deputy Governor's flat) in Mumbai, it said. "No support staff has been provided to the present Governor, Urjit Patel at his residence. Two cars and two drivers have been provided to the present Governor," RBI said in reply to an RTI query.
-—M Ratnakar
+The bank was asked to provide details of remuneration given to former RBI governor Raghuram Rajan+ and incumbent Patel.
+For the month of October — the first full month Patel was in office as Governor — Patel got Rs 2.09 lakh as his salary, the same amount drawn by Rajan as his August's salary. Rajan demitted office on September 4, and was given Rs 27,933 as remuneration for four days.
-'''KIDAMBI SRIKANTH'''
+Rajan assumed the charge of RBI Governor from September 5, 2013 at a monthly salary of Rs 1.69 lakh. His salary was revised to Rs 1.78 lakh and Rs 1.87 lakh respectively during 2014 and March 2015. His salary was hiked to Rs 2.09 lakh from Rs 2.04 lakh in January 2016, the RTI reply said.
-Popularising the whiplash smash and reinventing the aggressive style of badminton, Kidambi Srikanth made 2017 the best ever for Indian men. Of the seven Super Series titles India won, Srikanth bagged four. In the first quarter of the year, Srikanth did not do much as was he was recovering from his injuries. But in April he struck form. He lost to Sai Praneeth in the Singapore Super Series final and went on to win back-to-back Super Series titles in Indonesia and Australia. Though he had a disappointing World Championships, he was on a roll in October, once again claiming back-to-back titles in Denmark and France. With these amazing triumphs, Srikanth became only the fifth shuttler in the world to wear four Super Series crowns in a calendar year.
+Rajan was provided with three cars and four drivers. "One caretaker and nine maintenance attendants were posted as supporting staff in the bungalow provided by the bank to the former Governor Raghuram Rajan at Mumbai," RBI said.
-'''SAINA NEHWAL'''
+The Centre has recently declined to share details on appointment of Patel and other candidates shortlisted for the top post in the central bank saying these are "cabinet papers" and cannot be made public. Patel was on August 20 named as RBI's Governor to succeed Rajan.
-Even though she did not win many titles, Saina Nehwal still made her presence felt in 2017. The seasoned campaigner won only one title — the Malaysia Masters — in the last 12 months apart from the bronze at the Worlds, her second successive medal at BWF’s biggest event. However, her crowning glory was the straight-game victory over PV Sindhu in the National Championship final. The ace shuttler, who returned to the Gopichand camp in August after a three-year hiatus, will be keen to win a few more titles with the help of the Dronacharya awardee.
+==2017, pay hike: Rs 2.5 lakh/month==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-governors-pay-hiked-to-Rs-25L-per-03042017008029  RBI governor's pay hiked to Rs 2.5L per mth, April 3, 2017: The Times of India]
-'''SAI PRANEETH'''
-The supremely talented shuttler lived up to the expectations with two major titles. He started the year by reaching the final of the Syed Modi Grand Prix Gold tournament. But the biggest victory of his career came in April when he beat title favourite Srikanth in the final to win the Singapore Open Super Series. He also won the Thailand Grand Prix Gold title in June.
+RBI governor Urjit Patel and his deputies have got a big pay hike with the government more than doubling their basic salary to Rs 2.5 lakh and Rs 2.25 lakh per month, respectively .
+The “basic pay of the governor and deputy governors“ have been revised retrospectively with effect from January 1, 2016 and marks a huge jump from Rs 90,000 basic pay so far drawn by the Governor and Rs 80,000 for his deputies. Still, their salaries are much lower than the top executives of various banks regulated by the RBI.The RBI, however, did not disclose the new gross pay for Patel and his deputies following the revision in basic pay.
-'''HS PRANNOY'''
+=Governors of the Reserve Bank of India=
+==1935- 2013: complete list==
+[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/08/07&PageLabel=22&ForceGif=true&EntityId=Ar02206&ViewMode=HTML The Times of India] 2013/08/07
-If there was one shuttler who lady luck did not oblige this year, it has to be HS Prannoy. The Kerala shuttler, who is regarded as one of the most deadliest attackers on the circuit, could have won at least two Super Series titles this year. He beat the best in the world, but fortune deserted him at crucial moments. Though he stunned Olympic champ Chen Long and Malaysian great World No.1 Lee Chong Wei, he failed to convert such major victories into titles. However, he helped his friend Srikanth by mowing down these tough nuts. He ended the year with a dominant victory against Srikanth in the National badminton final.
+[[File: rbiGova.png||frame|left|500px]]
+[[File: rbiGovb.png||frame|500px]]
+<br/>
-==June: The rise of Srikanth, Praneeth, Prannoy==
+[[File: Governors of RBI since 1935.jpg|Governors of RBI since 1935; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=21_08_2016_017_017_001&type=P&artUrl=GOVERNORS-IN-LIBERALIZED-INDIA-21082016017017&eid=31808 ''The Times of India''], August 21, 2016|frame|500px]]
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RISE-OF-THE-SHUTTLE-MEN-27062017024015  Manne Ratnakar, June 27, 2017: The Times of India]
+[[File: Interest rates, inflation and GDP growth during the tenures of RBI Governors, 1990-April 2016.jpg| Interest rates, inflation and GDP growth during the tenures of RBI Governors, 1990-April 2016; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=16_04_2016_021_021_010&type=P&artUrl=Rate-cut-depends-on-raindrops-Rajan-16042016021021&eid=31808 ''The Times of India''], April 16, 2016|frame|500px]]
-Having played second fiddle to Saina Nehwal and PV Sindhu for long, India's male shuttlers, led by K Srikanth, have suddenly created big buzz with several stunning international triumphs recently. TOI looks at the phenomenon...
+[[File: Rates during the regime of RBI governor Mr. Raghuram Rajan, September 2013-September 2016.jpg|Rates during the regime of RBI governor Mr. Raghuram Rajan, September 2013-September 2016; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=10_08_2016_027_050_009&type=P&artUrl=Rates-unchanged-but-Rajans-cash-promise-trims-yields-10082016027050&eid=31808 ''The Times of India''], August 10, 2016|frame|500px]]
-`Hunting in packs' is the new mantra in Indian men's badminton. The exploits of Kidambi Srikanth, Sai Praneeth and HS Prannoy have catapulted Indian badminton to a new high as a group of Indian men have begun dominating men's singles as never before.
+== Duvvuri Subbarao: 2008-2013==
-Led by Srikanth, they have achieved a rare Super Series hat-trick besides notching up title wins in four of the last five big international tournaments.While Srikanth won the Indonesia and Australia Open Super Series titles, Sai bagged the Singapore Super Series and Thailand Grand Prix Gold crowns.
+Subbarao, man who fell into cauldron of woes
+Surojit Gupta | TNN
-The support cast too has played a key role in the number of titles won by the Indians. Prannoy and Parupalli Kashyap may not have won titles but they had helped their friends by clear ing their path. In Jakarta, Prannoy knocked out the legendary Lee Chong Wei and Olympic champion Chen Long, thereby letting Srikanth negotiate an easier opponent in the final.
+[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/08/07&PageLabel=22&EntityId=Ar02205&ViewMode=HTML The Times of India] 2013/08/07
-In Australia, Kashyap shut out Indonesia Open finalist Kazumasa Sakai at the qualifying stage itself.
+New Delhi: For Duvvuri Subbarao it was baptism by fire when he took over the reins of the Reserve Bank of India nearly five years ago.
-The sterling performance of the Indian boys in the last two months have made them one of the most feared gang of shuttlers in the world arena. Interestingly, most of them are in the 22-24 years age group, making them bright prospects for marquee international events which are coming up -like the Olympic and World Championships.
+As soon as he stepped into the corner office at the central bank headquarters in Mumbai’s Mint Road, a tsunami struck the global financial system. The force of the 2008 global financial meltdown meant that RBI had to call on all its resources to shield the economy from being brutalized.
-What makes the scenario even more heartening is that besides these four, there are other talented shuttlers like Ajay Jayaram, Sameer Verma and Sourabh Verma who have been keeping the Indian flag flying.
+Subbarao, a mild-mannered former civil servant, remained unfazed. With the government, he scripted a recovery process stabilizing the economy, helping it weather the storm better than some of its peers.
-Undoubtedly, this is the best phase ever in men's singles for India. Earlier, success in this sphere was limited to Prakash Padukone (All England title in 1980) and Pullela Gopichand (All England title in 2001).
+But this was short-lived. The economy was buffeted by stubborn inflation, including double-digit food inflation, prompting the central bank to focus on taming prices. It raised rates furiously, almost 13 times, to throttle inflation.
-After the two major titles _ which were separated by more than two decades _ the best feats were Kashyap win ning the Commonwealth Games Gold and Srikanth clinching the China Open Super Series Premier in 2014. Srikanth added the Indian Open Super Series crown in 2015 while the likes of Jayaram and Sai Praneeth claimed Grand Prix Gold titles. But the major push came in last two months.
+Of late, frosty ties between RBI and the finance ministry have dominated discussions. Critics slammed the policy to tackle inflation while the government sometimes expressed disappointment. Finance minister P Chidambaram, who is careful with words, appeared disappointed as RBI left interest rates unchanged.
-Gone are the days when Indians struggled to clear the qualifying stage and breaking into the top-50 was celebrated as a major feat. Our men are in the elite league now. It has taken years of hard work, sweat, sacrifice and a lot of planning to bring about this transformation. A lot of credit for this turn around has to go to National coach Gopichand.
+“Growth is as much a challenge as inflation. If the government has to walk alone to face the challenge of growth then we will walk alone,” Chidambaram said highlighting the need for an inflation-growth balance.
-As a player, he faced a series of difficulties, got injured often, found no proper system but still achieved success.Once his career ended, he was determined to build a system. “There was never a dearth of talent in our country .Even during my time we had extremely talented players like Chetan Anand, Anup Sridhar, Arvind Bhatt, Nikhil Kanetkar. But what I realised was that all were crafty but lacked fitness, strength, speed and endurance. To get these things we needed to create a group of people around a player. In our days we never had a proper coaching system, no concept of having a physio, nothing like that. These are the basic necessities and thankfully we have created them now,“ Gopichand said.
+Adding to Subbarao’s problems, the fiscal situation deteriorated. Growth slowed. Scandals and policy missteps, such as retrospective taxes forced investors to the sidelines. Subbarao bravely continued calling for action on the fiscal front to enable him to slash interest rates. That didn’t happen until Chidambaram stepped in as finance minister in September. His reform initiatives helped restore the health of public finances. RBI obliged with a rate cut. But this came with a caveat on the ch a l l e n g e s on the prices front.
-Gopichand also realised that the thought process of Indian shuttlers needed to change. “I always used to think different from others. In those days we were told to pick and play small tournaments, win some and improve the rankings. I thought it was wrong. So, I started making Saina (Nehwal) play in Super Series events. We need to believe in ourselves, think big and do what it requires to reach there,“ Gopi said.
+As things appeared to settle down, the crisis on the currency front emerged, prompting RBI to work towards taming the volatile forex market.
-Though Gopi achieved success with the girls _ Saina and PV Sindhu _ it took a while for him to replicate it in men's singles. “Success in women was achieved fast because I got two strong girls in Saina and Sindhu. But it took time for me to build that strength and fitness in men. Another area I succeeded in was converting the success at the junior level to senior stage. I also got an excellent support staff,“ Gopi said.
+Some economists said the RBI under Subbarao misjudged the signals. “You cannot separate two or three issues, one of which is that when it comes to inflation and growth, both monetary and fiscal policies matter. In my assessment, the country had the most unfortunate fiscal policies compounded by the most unfortunate monetary policy,” economist Surjit Bhalla said. “The RBI misjudged the economy, determinant of inflation, determination of growth and determinant of the exchange rate.”
-India have as many as six men in the top-35 of world rankings at present. It's a promising position and if the players keep improving, India can become a global power.
+He said the RBI under Subbarao had misjudged food inflation and hiked rates. “What could’ve been a virtuous cycle has been turned into a vicious cycle,” Bhalla said. Not all would agree with such a harsh summation.
-With the longevity of shuttlers increasing due to modern training methods, Srikanth & Co will be around for at least another five years during which time they can take Indian badminton to a higher plane. With talented youngsters like Lakshya Sen and Siril Verma waiting in the wings, the future seems to hold exciting prospects for India.
+==Raghuram Rajan==
+[[Raghuram Rajan]]
-==June: The male stars==
+==Urjit Patel==
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=THE-SHINING-BRIGADE-27062017024026  Jun 27 2017: The Times of India]
+===2016-18===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F27&entity=Ar01714&sk=C1069BC6&mode=text  Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 27, 2018: ''The Times of India'']
+[[File: The first two years of Urjit Patel’s innings as the Governor of the RBI- Economic indicators 2016-18.jpg|The first two years of Urjit Patel’s innings as the Governor of the RBI- Economic indicators 2016-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F27&entity=Ar01714&sk=C1069BC6&mode=text  Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 26, 2018: ''The Times of India'']|frame|500px]]
-'''KIDAMBI SRIKANTH (24, ranking 11)'''
-The form man of world badminton right now, Srikanth has risen fast to become the poster boy of men's badminton in India. He is expected to be ranked around 5 in the world when the fresh list is announced on Thursday.
+When Urjit Patel was appointed the 24th governor of the Reserve Bank of India (RBI) in August 2016, TOI had cautioned those who saw him as a pro-administration governor, pointing out that he was an inflation hawk.
-'''PARUPALLI KASHYAP (30, ranking 116)'''
+As he completes two years in office next week (he took over from the previous RBI governor Raghuram Rajan on September 4, 2016), Patel has demonstrated that he is no pushover. Whether it is interest rates, non-performing assets (NPAs) or the issue of public sector bank regulation — Patel has not shied away from locking horns with the government.
-He has been the guiding light to all the men's singles shuttlers. His victories at the international level, particularly the 2014 Commonwealth Games gold, gave confidence to others like Srikanth, Prannoy and Sai Praneeth. He was also the first Indian man to reach the Olympic quarterfinals. Kashyap has been fighting injuries in the last two years but is now back on court.
+While his first year as the head of the central bank was overshadowed by the events following demonetisation, Patel’s tenacity came to light during his second year. That was when the RBI asked lenders to take the who’s who of India Inc to court and sell their businesses under the newly-introduced Insolvency and Bankruptcy Code. These included corporate groups like Essar, Videocon and Bhushan Steel.
-'''HS PRANNOY (24, ranking 21)'''
+Patel’s obduracy, insisting that lenders stick to the letter for classifying loans as bad, has frustrated senior bureaucrats and politicians. Government officials point out that even public sector companies fail to make timely payments. However, for those who have been paying attention to Patel, this tough stance should not come as a surprise.
-HS Prannoy, who trains at the Gopichand Academy in Hyderabad, has always been regarded as a very talented shuttler. His big break was the Swiss Open Grand Prix Gold title last year.He also created a splash by stunning Olympic gold medallist Cheng Long and silver medallist Lee Chong Wei at the recently Indonesia Open.
+A year ago in a speech titled ‘Resolution of stressed assets: Towards the endgame’, Patel had highlighted the challenges ahead, “We all must realise that it will be a long haul before the intended objectives are fully achieved... but as long as the endgame is a desirable goal, these should be worth it for placing the private economy structurally on a path of sustained growth.”
-'''AJAY JAYARAM (29, ranking 15)'''
+When it comes to setting of interest rates, the central bank is perhaps more independent under Patel then it was ever before. This is because Patel’s regime in the RBI coincided with the constitution of the monetary policy committee (MPC), which had a mandated objective to keep inflation at around 4%. Incidentally, the MPC was constituted based on recommendations made by a committee headed by Patel as deputy governor.
-Till recently, Ajay Jayaram was the top-ranked Indian men's singles shuttler. Unlucky to miss the London Olympics berth by a whisker, Jayaram won the Dutch Open Grand Prix Gold twice -2014 and 2015. He missed a Dutch hat-trick when he lost in the final last year. Jayaram, who trains under Tom John, also reached the finals of the Korea Open Super Series in 2015.
+Patel’s second year saw increased friction with the finance ministry following the Punjab National Bank scam. Soon after news of the scam broke, FM Arun Jaitley lashed out at the central bank, stating that while politicians are accountable, regulators (meaning the RBI) are not.
-'''SAI PRANEETH (24, ranking 16)'''
+Patel’s comeback was equally strong. In one of his rare speeches, the governor said, “Success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking.” He then listed seven legislative provisions that ensured the RBI did not have much of a say in public sector banks. The finance ministry’s pointed rebuttal brought to light the stress in the relationship.
-His Singapore Open triumph made him only the second Indian after Srikanth to clinch a Super Series title. He made it two titles in a row by claiming the Thailand Open Grand Prix Gold as well. The crafty player is expected to pose a major threat to the top shuttlers in the world.
+Patel, whose signatures appear in more currency notes than any other RBI governor, is the most low-profile central banker with only eight public speeches in two years. The final year of his term, being an election year, will be even more crucial as it will also bring him into the stressed loan endgame that he speaks about.
-'''SAMEER VERMA (22, ranking 32)'''
-The younger of the Verma brothers, Sameer's best show so far was reaching the final of the Hong Kong Open Super Series in November 2016. The 22-year-old is a hard-working shuttler who defeated Sai Praneeth to win the Syed Modi Grand Prix Gold title in January this year. His elder brother, Sourabh Verma, who is 24, is ranked 35th in the world and is yet another player to watch out for.
-==August: World Championship, Glasgow==
+[[Category:Economy-Industry-Resources|R
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=SINDHU-GOES-DOWN-FIGHTING-IN-THRILLING-WORLD-FINAL-28082017001052  Aug 28 2017: The Times of India]
+THE RESERVE BANK OF INDIA]]
+[[Category:Government|RTHE RESERVE BANK OF INDIATHE RESERVE BANK OF INDIA
+THE RESERVE BANK OF INDIA]]
+[[Category:India|R
+THE RESERVE BANK OF INDIA]]
+[[Category:Name|ALPHABETTHE RESERVE BANK OF INDIATHE RESERVE BANK OF INDIA
+THE RESERVE BANK OF INDIA]]
+[[Category:Pages with broken file links|THE RESERVE BANK OF INDIA]]
-In a first, two Indians finished on the podium. Sindhu -who had earlier won bronze medals at the 2013 and 2014 World Championships -won the silver and Saina a bronze.
+=Balance sheet=
+==Where do RBI’s surplus funds come from?==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02914&sk=1554FE66&mode=text  November 21, 2018: ''The Times of India'']
-==September: Five Indian men in top-20==
+[[File: The RBI’s reserves, 2013-18.jpg|The RBI’s reserves, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02914&sk=1554FE66&mode=text  November 21, 2018: ''The Times of India'']|frame|500px]]
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=INDIAFILES-Five-Indian-men-shuttlers-in-top-20-29092017027032   Five Indian men shuttlers in top-20, Sep 29 2017:: The Times of India]
+'''Where do RBI’s surplus funds come from?'''
-Five Indians find themselves in the top-20 of the BWF men's singles rankings with H S Prannoy being the biggest gainer after his quarterfinal showing at the Japan Open. Prannoy has jumped four places to be world no 15 while Kidambi Srikanth, who too lost in the quarterfinals in Japan, remains the highest-ranked Indian male player at eighth. Ajay Jayaram remains at the 20th spot while B Sai Praneeth too has not moved from his position of 17th. Sameer Verma has gained a couple of places to the 19th.
+RBI’s board this week decided to set up an expert committee to examine its ‘Economic Capital Framework’. The committee is expected to break down RBI’s balance sheet to decide if its reserves are consistent with its needs.
-==November: Sindhu, Srikanth both world’s No. 2==
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Double-joy-Sindhu-and-Srikanth-ranked-No-2-07112017023030  Manne Ratnakar, Double joy: Sindhu and Srikanth ranked No. 2, November 7, 2017: The Times of India]
+'''What is the size of the RBI’s balance sheet?'''
-''The rise and rise of the Indian shuttlers has been awe inspiring.''
+In 2017-18, the size of RBI’s balance sheet was Rs 36.2 lakh crore. Its balance sheet, however, is unlike that of a company. The currency notes it prints make up more than half its liabilities. Another big share, 26%, represents its reserves. These are invested mainly in foreign and Indian government securities (essentially promisory notes bearing an interest rate against which these governments borrow) and gold. RBI holds a little over 566 tons of gold, which along with its forex assets make up almost 77% of its assets. Sometimes, the finance ministry and RBI disagree on what level of reserves RBI must hold to be consistent with its operations.
-Four Super Series title triumphs catapulted Kidambi Srikanth to world No.2. It's a new high for Indian badminton as two shuttlers are currently ranked No.2 in the world, a feat accomplished for the first time.While PV Sindhu reached there a few weeks back, Srikanth joined her.
-Until 2016, the script involved the success stories of Saina Nehwal and Sindhu. Saina's title-winning spree made it look difficult for others to emulate her till Sindhu started winning medals on a bigger stage. Inspired by the girls, the boys took charge in 2017 and collected more than half a dozen titles.
+'''Where do the RBI’s reserves come from?'''
-Srikanth may even become No.1 very soon.
+Reserves with RBI are not all of the same kind. In the current debate there are two which are relevant: The Currency & Gold Revaluation Account (CGRA) makes up the biggest share — it was Rs 6.9 lakh crore in 2017-18. This represents the value of the gold and foreign currency that RBI holds on behalf of India. Simply put, variations in this represent the changing market value of these assets. Thus, the RBI notionally gains or loses on this count according to market movements. For example, last year the CGRA increased by 30.5% largely because of the depreciation of the rupee against the US dollar and due to an increase in the price of gold.
-The efforts of coach Pullela Gopichand are responsible for the badminton revolution in the country . But the Dronacharya insisted that the success story is a culmination of a lot of things. “It is a culmination of a lot of things. Each and everybody's contribution is very important. Be it the Sports Authority of India (SAI), government, sponsors, coaches and also senior players like Saina and Kashyap,“ Gopichand said.
+The Contingency Fund (CF) is a specific provision meant for meeting unexpected contingencies that arise from RBI’s monetary policy and exchange rate operations. In both cases, RBI intervenes in the relevant markets to adjust liquidity or prevent large fluctuations in currency value. The CF in 2017-18 was Rs 2.32 lakh crore, or 6.4% of assets. The CGRA and CF put together constituted 26% of assets (and because in a balance sheet assets and liabilities must by definition match, also the same proportion of its liabilities).
-Saina and Kashyap made others believe that success at highest level could be achieved.
-==November: Prannoy, Saina win national titles==
+'''What is the RBI’s surplus?'''
-[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Sizzling-Saina-surprises-Sindhu-09112017027001 Suhas Nayse, Sizzling Saina surprises Sindhu, November 9, 2017: The Times of India]
-[[File: Achievements, Men's singles, Women's singles, Men's doubles, Women's doubles, Mixed doubles, 2017.jpg|Achievements, Men's singles, Women's singles, Men's doubles, Women's doubles, Mixed doubles, 2017 <br/> From: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Sizzling-Saina-surprises-Sindhu-09112017027001 Suhas Nayse, Sizzling Saina surprises Sindhu, November 9, 2017: The Times of India]|frame|500px]]
+This represents the amount RBI transfers to the government. There are two unique features about RBI’s financial statements. It is not required to pay income tax and has to transfer to the government the surplus left over after meeting its needs. RBI’s income comes mainly through interest on the securities it holds and in 2017-18 the largest component of expenditure was a provision of about Rs 14,200 crore it made to the contingency fund.
-[[File: Women's singles final and Men's singles final, some facts, 2017.jpg|Women's singles final and Men's singles final, some facts, 2017 <br/> From: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=09_11_2017_035_014_001&type=P&artUrl=SAINA-BEATS-P-V-SINDHU-PRANNOY-STUNS-SRIKANTH-09112017035014&eid=31808  November 9, 2017: The Times of India]|frame|500px]]
+Obviously, the larger the provision made to CF, the lower the surplus. Beginning 2013-14, RBI didn’t make a provision to CF for three successive years as a technical committee felt its “buffers” were more than enough. In the last two years, however, RBI has made provisions to CF. The adequacy of the current level of CF is one of the key issues likely to be debated extensively by the expert committee.
-'''See also:'''
+==2013-18: surplus transferred ==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02210&sk=E802297C&mode=text  Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: ''The Times of India'']
-''Achievements, Men's singles, Women's singles, Men's doubles, Women's doubles, Mixed doubles, 2017''
+[[File: RBI's Balance Sheet, 2013-18.jpg|RBI's Balance Sheet, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02210&sk=E802297C&mode=text  Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: ''The Times of India'']|frame|500px]]
-''Women's singles final and Men's singles final, some facts, 2017''
+The Reserve Bank of India (RBI) transferred around Rs 2.5 lakh crore to the government during the last five years, which was around 75% of the central bank’s income.
+While analysing the government’s finance account last year, the Comptroller and Auditor General studied RBI’s income, expenditure and surplus transferred to the Centre between 2013-14 and 2017-18 and found that out of its income of Rs 3.3 lakh crore, the central bank had transferred Rs 2.48 lakh crore. The highest payout was in 2015-16, when 83% of the RBI’s income was transferred to the Centre as surplus.
-'''Back With Coach Gopi, Nehwal Claims Third National Title; Prannoy Shocks Srikanth For Maiden Crown'''
+RBI’s reserves have been a bone of contention, with the government keen to increase the payout. What has added to the discord in recent years is the Economic Survey pointing out that RBI has higher reserves than other central banks.
-Form and rankings went for a toss as Saina Nehwal and HS Prannoy stunned hot favourites PV Sindhu and Kidambi Srikanth to emerge champions in the 82nd Senior National Badminton Championship.
+In the recent past, RBI has been transferring surplus of around Rs 65,000 crore annually to the government, barring 2017 when its expenditure more than doubled to Rs 31,000 crore. Till 2016-17, the RBI’s expenditure remained below Rs 15,000 crore but shot up due to higher cost of printing currency notes at the time of demonetisation.
-The packed stadium with around ten thousand spectators at the Divisional Sports Complex witnessed some spectacular badminton from the country's premier shuttlers which kept them on the edge of their seats till the last point of the week-long tournament.
+In a speech last month, RBI deputy governor Viral Acharya had hit out at the government for seeking higher dividend and cited the example of Argentina, where a similar development took place eight years ago, to argue that the central bank’s autonomy should not be compromised. The issue was one of the key agenda items at the marathon board meeting of the RBI.
-The dream summit clash between Saina and Sindhu lived up to expectations with both the players slugging it out for each point resulting in long and pulsating rallies.
+===Surplus capital, 2013-18===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F02&entity=Ar02900&sk=7D9EB8EA&mode=text  RBI’s forex sale profit to help bridge deficit, February 2, 2019: ''The Times of India'']
-Saina, seeded second, proved a point or two to her detractors by upsetting top seed Sindhu 21-17, 27-25 in 54 minutes to clinch her third title. The 27-year-old thus maintained her perfect record in the Nationals with three titles in as many appearances.
+[[File: The Reserve Bank of India’s surplus capital, 2013-18.jpg|The Reserve Bank of India’s surplus capital, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F02&entity=Ar02900&sk=7D9EB8EA&mode=text  RBI’s forex sale profit to help bridge deficit, February 2, 2019: ''The Times of India'']|frame|500px]]
-Incidentally , she marked her comeback to the Nationals after a gap of almost ten years with the crown. As a teenager, she had triumphed at Goa in 2008 where she had defended the title she had won for the first time at Patna in 2007.
+''To Consider ₹28,000Cr Interim Dividend In Addition To ₹40,000Cr Already Given To Govt''
-Saina was fully fired up while taking on Sindhu as she made swift movements to jump to a comfortable lead in the first game. Besides excellent court coverage, the world No. 11 executed several bodyline smashes which Sindhu found too hot to handle. Sindhu reduced the deficit in the end but could not stop Saina pocketing the first game at 21-17.
+The volatility in the foreign exchange and bond market is helping the government to bridge some of its fiscal deficit. The Reserve Bank of India (RBI) is understood to have made record profits from selling dollars in the foreign exchange market when the rupee came under pressure.
-Stunned by the reversal, Sindhu bounced back gallantly in the second game. Although the scores were al most equal at the start, Sindhu surged ahead by three points and looked set to restore the parity.
+These profits are likely to be distributed to the government in the form of an interim dividend, which will be considered in the next board meeting of the central bank.
-However, Saina was in no mood to let it go. She fought back like a true fighter and saved a couple of game points to stop Sindhu. Sindhu too was equally determined to take the match into the decider. After six deuces, Saina finally managed to convert her sixth match point.
+Economic affairs secretary Subhash Chandra Garg said on Friday that the government expects an interim dividend of Rs 28,000 crore from the RBI. This is in addition to the Rs 40,000 crore already received from the central bank during FY19, Garg said in an interaction with the media after the interim budget was announced.
-At 26-25, both the players were engaged in another long rally , keeping the entire crowd breathless. After around twenty strokes, Sindhu fai led to return one of Saina's sharp half-shashes and hit the shuttle in the net as Saina punched the air in jubilation.
+The Rs 28,000-crore interim dividend will be transferred by the RBI before end March 2019. As a result, the interim dividend will help the government ease fiscal pressure as the money will come within the current financial year. The RBI, which follows a July-June financial year, paid about 63% higher dividend than the previous year (2016-17).
-Saina thanked her support staff and coach Pullela Gopichand for the turnaround in her fortunes. “I am surprised with the way I played today .I moved well and picked Sindhu's difficult shots. It was a great match and I am glad that I could finish it off in two games. I would like to thank all the support staff and Gopi Sir for working hard on me in the last couple of months,“ an elated Saina told TOI af ter the final.
+Meanwhile, the government has revised dividend or surplus of the RBI, nationalised banks and financial institutions to Rs 74,140 crore from Rs 54,817 crore estimated earlier in the Budget 2018-19. In the next year too, the RBI is expected to be a major contributor to the government’s revenues.
-Earlier, the men's singles final bet ween Srikanth and Prannoy also saw a big upset. Second seeded Prannoy edged out top seed and world No. 2 Sri e kanth 21-15, 16-21, 21-7 in a battle which lasted 50 minutes. It was a special mo . ment for Prannoy as he had never won any National title in any age group.I Prannoy celebrated his first entry o into the final in style by overcoming e the stiff challenge from his regular practice partner. The Kerala youngs ter also avenged his defeat to Srikanth in the semifinal of the French Open Super Series a few days back.
+A panel headed by former RBI governor Bimal Jalan is looking at whether the central bank is holding surplus capital, which can be transferred to the government. The panel is expected to submit its report by end-March.
-Ashwini Ponnappa bagged a double crown by claiming women's doubles and mixed doubles titles. Top seeds Ashwini and N Sikki Reddy stopped the giant-killing run of unseeded Maharashtra pair of Sanyogita Ghorpade and Prajakta Sawant in the women's doubles final.
+According to Care Ratings MD & CEO Rajesh Mokashi, dividends and profit will contribute highest (50%) to the non-tax revenue.
-In the mixed doubles final, Ashwini teamed up with teenager Satiwik Sai Raj to annex the mixed doubles final. The new combination shocked top seeds Pranaav Jerry Chopra-N Sikki Reddy 21-9, 20-22, 21-17.
+“The government is expecting higher dividends (11.8% more) by way of surplus transfers from the RBI as the performance of the PSUs has been impacted by nonperforming assets. Other non-tax revenues are slated to grow 8.9% over 34.3% yearon-year in the previous year,” he said. Other non-tax revenues include social, general and economic services provided by the government.
-==November: China Open: loses singles quarterfinal==
+=Dividends=
-[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIM%2F2017%2F11%2F18&entity=Ar03014&sk=69090E06&mode=text  Suhas Nayse, Defending champ Sindhu stunned, November 18, 2017: ''The Times of India'']
+==2017: Demonetisation, printing of currency: RBI halves dividend ==
+[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-halves-dividend-to-govt-to-Rs-31k-11082017021025  Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India]
+[[File: RBI dividend to government, 2013-17.jpg|RBI dividend to government, 2013-17; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-halves-dividend-to-govt-to-Rs-31k-11082017021025  Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India]|frame|500px]]
-Defending champion PV Sindhu found Chinese teenager Fangjie Gao too hot to handle and bowed out of the China Open Super Series Premier badminton in Fuzhou on Friday.
+'''Demonetisation, Printing Of Currency Take A Toll'''
-Nineteen-year-old Gao shattered the hopes of Sindhu with a clinical 21-11, 21-10 win in a one-sided women’s singles quarterfinal. Throughout the 38-minute encounter, Sindhu never looked in control and was completely surprised by the qualifier ranked 89th in the world.
+In a surprise announcement, the RBI said that it has halved its dividend payment to the government to Rs 30,659 crore for 2016-17 from nearly Rs 66,000 crore in each of the previous two years. The lower dividend is due to huge expenses borne by the RBI by way of interest payment to banks as part of its liquidity management exercise and in printing notes following demonetisation.
-Aiming to defend the title, Sindhu’s bid was foiled by an inspired local girl, regarded as one of the most promising shuttlers in China after the era of three Wangs and Olympic champion Li Xuerui.
+The dividend amount was decided by the central board of directors, which met to finalise accounts for the year ended June 2016.The board would have also finalised how the central bank deals with the demonetised currency notes that were not turned in before June 2017. However, the RBI is yet to divulge details on whether it has extinguished the currency which has not been deposited.
-==November: Lost in Hong kong Super Series==
+The halving of dividend will hurt the government's finances. “The lower amount will be a concern since the government's non-tax receipts will be affected. In the Budget, it was assumed that around Rs 75,000 crore would come from RBI, public sector banks (PSBs) and financial institutions compared with a little over Rs 76,000 cr in FY17,“ said Madan Sabnavis, chief economist, CARE Ratings. According to Sabnavis, as PSBs are unlikely to do better than last year and the RBI will be transferring a smaller amount, this will impact the fiscal deficit numbers.“If other conditions remain unchanged, the fiscal deficit can increase from 3.2% to 3.4% this year,“ he added.
-[https://timesofindia.indiatimes.com/sports/badminton/pv-sindhu-loses-in-hong-kong-open-super-series-final/articleshow/61805193.cms  November 26, 2017: ''The Times of India'']
+Devendra Kumar Pant, chief economist, India Ratings, said the drop in dividend is due to lower earnings due to reverse repo transactions (where the RBI borrows from banks) and high costs incurred in printing of notes. Besides this, the appreciation of the domestic currency vis-a-vis the US dollar led to lower returns in rupee terms. “Firstquarter direct tax collections, if continued in the fiscal, will provide some buffer for central government deficit,“ he added.
-PV Sindhu's gallant fight ended in agony as she suffered a second successive loss to world no. 1 Tai Tzu Ying of Chinese Taipei at the summit clash of the $400,000 Hong Kong Super Series.
+The minister of state for finance Arun Meghwal had earlier said that it costs between Rs 2.87 and Rs 3.09 to print the new Rs 500 note and Rs 3.54-3.77 for a Rs 2,000 note. Given these numbers, it would have cost the RBI over Rs 13,000 crore to print fresh currency notes during demonetisation. This is almost thrice the Rs 3,421 crore the RBI spent on printing notes in the previous year. According to economists, when the macro fundamentals are so und, the RBI ends up with weak earnings and, conversely, when the country's fundamentals are under strain, the central bank generates exceptional gains. This is because at times of stress, the RBI tightens liquidity and makes windfall profits lending to banks at high rates.But when the rupee is strengthening, the central bank loses money by buying a falling dollar. The biggest cost to the RBI by far, when the country is facing a problem of plenty, is the cost of impounding surplus liquidity. Banks are sitting on sur plus funds due to absence of credit demand. Soumya Kanti Ghosh, chief economist, SBI, said, “Credit growth has decelerated by Rs 1.5 lakh crore in current fiscal -a historic low.“ He added that given surplus funds, SBI, Axis Bank and Bank of Baroda have reduced the savings bank rate to keep the lending rate low.
-Playing her fifth straight tournament, Sindhu, who had a 3-7 head-to-head record against Tai before the match, never lacked in fitness and fought throughout the match before going down 18-21 18-21 to the defending champion in a 44-minute women's singles final.
+Since November, banks have been awash with surplus liquidity thanks to cash being deposited with them.While most of these were slowly withdrawn, a large chunk continued to remain with banks. According to dealers, the surplus liquidity with banks has risen to Rs 3 lakh crore as compared to the RBI's target range of Rs 1 lakh crore.
-This is Sindhu's second loss in the four finals that she reached this season. She had lost to Japan's Nozomi Okuhara at the World Championship final, while clinched two titles at India and Korea this year.
+==2016> 2018==
-In the opening game which lasted 21 minutes, Tai moved to a 3-0 lead early on before Sindhu made a good judgement at the baseline to log the first points. However, Tai unleashed her wide repertoire of strokes and varied the pace well to lead 7 -2.
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F09&entity=Ar02101&sk=6468B053&mode=text  At ₹50,000cr, RBI gives govt 63% more dividend, August 9, 2018: ''The Times of India'']
-Sindhu then started to dominate the rallies by using her deep clears and drew the Taiwanese close to the net. She used her reach to catch the shuttle early and placed it in difficult positions to narrow the deficit to 6-7.
-A deceptive net return gave Tai a point. The Taiwanese then produced a smash on the deep backhand corner of Sindhu and moved to 10-7. Sindhu unleashed a body smash to perfection before Tai's flat straight return bamboozled the Indian.
+The RBI has transferred a surplus of Rs 50,000 crore to the central government, which is 63% more than last year’s dividend of Rs 30,659 crore. This payout is also 91% of the Rs 54,817-crore dividend income that the government budgeted from the RBI, nationalised banks and other financial institutions in its Budget 2018.
-At the break, the Taiwan had a three point advantage.
+It is likely that the central bank would have generated a higher surplus arising out of foreign exchange operations. The RBI has sold foreign currency assets worth over $20 billion this year, which is reflected in the decline in forex reserves from nearly $400 billion on March 30, 2018 to around $379 billion. The foreign currency assets sold were worth Rs 1.40 lakh crore and would have added to the RBI’s rupee balance sheet and enabled it to pay a higher dividend.
-After the breather ,Tai committed a couple of unforced errors at both the flanks, while Sindhu came up with a backhand return near the net to reduce the margin to 10-13 but Tai quickly recovered to extend her domination to 16-13.
+Public sector banks have not distributed any dividend to the government as all but two of them have reported losses. However, insurance companies would have made some payment to the government. Earlier in March, the RBI paid an interim dividend of Rs 10,000 crore at the insistence of the Centre to support fiscal position.
-Sindhu tried to anticipate her deceptive rival and put Tai in awkward positions a few times, but she hit long or at the net to allow the Taiwanese lead 18-14.
+“The central board of directors of the RBI, at its meeting held on August 8, approved the transfer of surplus amounting to Rs 500 billion (Rs 50,000 crore) for the year ended June 30, 2018 to the government,” the central bank said in a statement.
-A gritty Sindhu, however, kept breathing down her neck and soon clawed back at 18-18.
-During the next rally, the string of the Sindhu's racquet broke and Tai unleashed a smash which left the Indian frustrated. Tai produced another smash on Sindhu backhand to move to game point. She then grabbed the opening game after winning a video referral when her shuttle landed on the line.
+Unlike other financial institutions, the RBI follows a July-June financial year. The dividend payout had shrunk last year as the RBI had to spend a lot of money in printing of new currency notes following demonetisation in November 2016.
-In the second game, Sindhu was left to deal with some indecision due to the sidewise drift which gave early advantage to Tai but the gritty Indian levelled the score at 4-4 with a superb return at her rival's forehand.
+==2020; 2012-2020==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F08%2F15&entity=Ar03101&sk=E5F0328B&mode=text  RBI transfers ₹57,128 crore surplus to govt for 2019-20, August 15, 2020: ''The Times of India'']
-The duo moved to 7-7 before Tai hit wide and lost a referral too.
+[[File: RBI dividend to the government, 2012-2020..jpg|RBI dividend to the government, 2012-2020. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F08%2F15&entity=Ar03101&sk=E5F0328B&mode=text  RBI transfers ₹57,128 crore surplus to govt for 2019-20, August 15, 2020: ''The Times of India'']|frame|500px]]
-Sindhu produced a overhead backhand flick, a deceptive return at the forecourt and another smash to move to 10-7 before entering the lemon break with a two-point advantage when Tai found the net.
-However, Tai dominated the proceedings after the interval, despite a fighting Sindhu trying to snap at her heels.
-The Indian lost a referral and then failed to retrieve a shot at the forecourt as Tai led 12-11.
+''' In Line With Budget, But Won’t Make Up For Revenue Shortfall '''
-At 13-12, Sindhu was not allowed a video referral by the line judge and after that the match slipped away from the Indian even as Tai produced a stroke on Sindhu's forehand to perfection. With the Indian failing to finish the rallies, it allowed Tai to lead 17-12.
+The Reserve Bank of India (RBI) announced a dividend payout of Rs 57,128 crore to the government, in line with Budget expectations but not enough to make up for revenue shortfalls from other heads. This year’s dividend is not comparable to last year’s surplus transfer of Rs 1,76,051 crore, which included a one-time transfer of extra reserves in line with the recommendation of the Bimal Jalan-headed committee.
-Another weak return by Sindhu and Tai was leading 18-12. The Indian produced a cross court smash to break the rhythm, but she again hit long. Tai faltered at the net and then miscued a lift from the front court. She then hit long as Sindhu conjured up hopes of a turn around, moving to 16-19.
+The dividend was declared in the 584th meeting of the RBI’s central board. Besides approving accounts and maintaining a 5.5% contingency risk buffer, the board also discussed setting up of an innovation hub. Before adoption of the Jalan committee recommendations, the buffer had stood at 6.8%.
-However, a long rally ensued which ended with Sindhu's lift going long and Tai earned the match point at 20-16. Sindhu saved two match points before a perfect drop shot from Tai sealed the title for the Chinese Taipei shuttler.
+In the Union Budget 2020, the government had provisioned Rs 89,600 crore in dividend from the RBI, state run banks and financial institutions. Of this, the RBI was expected to contribute Rs 60,000 crore. Nationalised banks will not be declaring any dividend this year as the RBI has barred them from doing so in order to conserve capital to cover defaults arising out of the Covid-19 crisis.
-==2017, Dec. rankings==
+“The overall balance sheet of the central bank had expanded close to 30% in the RBI accounting year. Such rapid expansion would obviously limit the amount of seigniorage surplus to the government. Also, at the current rate, the total capital of the RBI including reserves is ahead of the 20.8-25.4% recommended by the Jalan committee that the central bank needs to maintain,” said SBI chief economist Soumya Kanti Ghosh.
-[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F12%2F08&entity=Ar03116&sk=0E6FFC09&mode=text  Srikanth fourth in rankings, December 8, 2017: ''The Times of India'']
+According to Ghosh, the government cannot look to the central bank to raise funds. “The surprise to the market was the rise in inflation of close to 7%. This is because of the shift in consumption from goods and services to food items. This will make it difficult for the RBI to cut rates. Now it is for the government to take action,” said Ghosh.
-Kidambi Srikanth improved a rung to be at the 4th position, while promising Indian shuttler Lakshya Sen entered the World top 100 after jumping 19 places to reach the 89th spot in the latest BWF ranking.HS Prannoy and B Sai Praneeth were static at the 10th place and 17th spots respectively. In women’s singles, PV Sindhu and Saina Nehwal retained their third and 10th places respectively.
+Bankers say that RBI’s revenue generation is highest when there is volatility in the financial markets — either bonds or foreign currency. During times of rupee volatility, the RBI ends up selling billions of dollars of foreign currency assets, which generate huge profits because of the weaker rupee. Similarly, when there is volatility in the bond markets, the RBI makes money through its open market operations.
-=2018=
+This year, despite the economic crisis, financial markets — including the currency and bond markets — have been stable with the central bank buying dollars. Facing a massive tax shortfall, along with higher spending due to Covid, the government is keen to maximise revenue from other sources, especially when the department of investment and public asset management (Dipam) has failed to garner resources.
-== BWF World Tour==
-=== Saina loses to Tzu Ying in QF===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F27&entity=Ar03320&sk=A7C55700&mode=text  October 27, 2018: ''The Times of India'']
+[[Category:Economy-Industry-Resources|R
+THE RESERVE BANK OF INDIA]]
+[[Category:Government|R
+THE RESERVE BANK OF INDIA]]
+[[Category:India|R
+THE RESERVE BANK OF INDIA]]
+[[Category:Name|ALPHABET
+THE RESERVE BANK OF INDIA]]
-Olympic medallist Indian shuttler Saina Nehwal’s impressive run at the French Open ended with yet another loss to World No. 1 Tai Tzu Ying, this time at the quarterfinals of the BWF World Tour Super 750 tournament here on Friday.
+=Gold reserves=
+==Purchases in 2009, 2018==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F04&entity=Ar02007&sk=B0770925&mode=text  RBI boosts forex kitty with first gold buy in 9 years, September 4, 2018: ''The Times of India'']
-Saina looked in good touch initially but couldn’t match the pace of Tzu Ying later on to squander four game points and lose the opening game. She was no match to her rival in the second and eventually went down 20-22, 11-21 in the quarterfinals here.
-It was Saina’s 12th straight defeat to the Chinese Taipei shuttler, who showed incredible temperament and determination to seal the contest after being 9-16 and 16-20 down in the opening game. Tzu Ying now has an overwhelming 14-5 head-to-head record against Saina.
+The Reserve Bank of India (RBI) has bought nearly 8.5 tonnes of gold in financial year 2017-18, the first purchase of yellow metal by the central bank in almost nine years, a report said.
-Earlier, PV Sindhu advanced to the quarterfinals with a straight-game win over Japan’s Sayaka Sato but B Sai Praneeth crashed out in men’s singles on Thursday night. Sindhu, seeded third, dished out a compact game to outwit Sayaka 21-17, 21-16 in a second round match on Thursday to set up a clash with seventh seeded Chinese He Bingjiao.
+The RBI held just over 566 tonnes of gold as on June 30, 2018, compared with 558 tonnes as on June 30, 2017, according to the central bank’s latest annual report for 2017-18.
-However, Praneeth was no match for Asian Games champion Jonatan Christie of Indonesia, going down 16-21, 14-21 in a men’s singles match.
+The central bank had last purchased gold in November 2009, when it had bought 200 tonnes of yellow metal from the International Monetary Fund (IMF).
-The men’s doubles pairs of Satwiksairaj Rankireddy and Chirag Shetty and Manu Attri and B Sumeeth Reddy too put up a good show, progressing to the quarterfinals with straight game wins.
+Of over 566 tonnes of gold reserves, about 292 tonnes is held as backing for notes and is shown as an asset of the issue department, and the balance 274 tonnes is treated as an asset of the banking department.
-==China Open World Tour==
+The value of gold held as asset of banking department rose by 11.1% to Rs 69,674 crore as on June 30, 2018, from Rs 62,702 crore as on June 30, 2017.
-=== Srikanth advances; Prannoy bows out===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F20&entity=Ar02720&sk=850D6959&mode=text  Suhas Nayse, Satwiksairaj-Ashwini Pair Moves Up, September 21, 2018: ''The Times of India'']
+This increase was primarily on account of depreciation of rupee as against the dollar and the addition of nearly 8.5 tonnes of gold during the year, the RBI’s annual report said.
-A day after Manu Attri and Sumeeth Reddy knocked out world No. 13 Chinese Taipei pair, Satwiksairaj Rankireddy and Ashwini Ponnappa stunned world No. 12 pair of Marcus Ellis and Lauren Smith of England in the China Open World Tour Super 1000 tournament in Changzhou.
+==2014-19==
+[[File: The RBI’s Gold reserves, 2014-19.jpg|The RBI’s Gold reserves, 2014-19 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F03%2F04&entity=Ar02505&sk=04FB88CD&mode=image  March 4, 2020: ''The Times of India'']|frame|500px]]
-Reigning national mixed doubles champions Satwiksairaj and Ashwini overcame a mid-match slump to edge out Commonwealth Games silver medallists Ellis and Smith 21-13, 20-22, 21-17.
+'''See graphic''':
-Kidambi Srikanth overcame a late fightback from Rasmus Gemke to post a 21-9, 21-19 win in the men’s singles first round. In a first match between the two players, seventh seed Srikanth ousted Denmark’s Gemke, ranked 23 in the world, with brilliant display.
+'' The RBI’s Gold reserves, 2014-19 ''
-The 2014 champion will now lock horns with Suppanyu Avihingsanon of Thailand for a spot in the quarters. The Thai player is world No. 28 and Srikanth has a perfect 2-0 record against him. But they havent’s faced each other since 2013 Malaysia GP Gold.
+[[Category:Economy-Industry-Resources|R
+THE RESERVE BANK OF INDIA]]
+[[Category:Government|RTHE RESERVE BANK OF INDIA
+THE RESERVE BANK OF INDIA]]
+[[Category:India|R
+THE RESERVE BANK OF INDIA]]
+[[Category:Name|ALPHABETTHE RESERVE BANK OF INDIA
+THE RESERVE BANK OF INDIA]]
-Srikanth’s practice partner HS Prannoy failed to clear the first round hurdle. The national champion lost to eighth seed Ng Ka Long Angus of Hong Kong 16-21, 12-21.
+=Government- RBI relations=
+== Why govts want central banks on their side==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F05&entity=Ar02504&sk=671ADF05&mode=text  November 5, 2018: ''The Times of India'']
-In a big upset, Gao Fangjie of China upset world No. 1 and top seed Tai Tzu Ying of Chinese Taipei 21-17, 21-16 in 37 minutes.
-INDIAN RESULTS (Round 1) Men’s singles: 7-Kidambi Srikanth bt Rasmus Gemke (Denmark) 21-9, 21-19; HS Prannoy lost to 8-Ng Ka Long Angus (Hong Kong) 16-21, 12-21; Men’s doubles: Satwiksairaj Rankireddy-Chirag Shetty lost to Goh V Shem-Tan Wee Kiong (Malaysia) 19-21, 20-22; Women’s doubles: Ashwini Ponnappa-N Sikki Reddy lost to Kim So Yeong-Kong Hee Yong (Korea) 10-21, 18-21; Mixed doubles: Satwiksairaj Rankireddy-Ashwini Ponnappa bt Marcus Ellis-Lauren Smith (England) 21-13, 20-22, 21-17.
+'''Why govts want central banks on their side'''
-===Sindhu, Srikanth reach quarters===
+A country's central bank and its government may not always see eye to eye — the latest rift between the RBI and the Centre is a case in point. But what makes a central bank essential to a country's economy, and what kind of power does it enjoy?
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F21&entity=Ar02509&sk=BF30956D&mode=text  Suhas Nayse, September 21, 2018: ''The Times of India'']
-PV Sindhu and Kidambi Srikanth survived scares against their respective opponents — both from Thailand — to reach the quarterfinals of the China Open in Changzhou on Thursday.
+'''Can an economy work without a central bank?'''
-Third seed Sindhu rallied against Busanan Ongbamrungphan 21-23, 21-13, 21-18 in a marathon match which lasted for an hour and nine minutes. Sindhu went in as the favourite, with a 8-0 head-tohead record against the 22-year-old. However, Busanan came up with a much-improved display to test the Indian.
+Considering the influence of central banks in today’s age, this is a difficult question to answer. Many countries have witnessed a constant tussle between the elected government and their central bank but no modern government has been able to either abolish or significantly curtail the power of their central bank. In the absence of such a bank it is difficult to imagine how a reliable payments system, a stable currency and controlled inflation level could be maintained.
-In the men’s singles second round, Srikanth came from a match-point down to pip Suppanyu Avihingsanon 21-12, 15-21, 24-22 in 63 minutes.
-After promising a lot in the last couple of days, India’s doubles campaign came to an end in the pre-quarters.
+'''What is the role of a central bank?'''
-Satwiksairaj Rankireddy and Ashwini Ponnappa lost 14-21, 11-21against top seeds Siwei Zheng and Huang Yaqiong of China. Pranav Jerry Chopra and Sikki Reddy also could not get the better of sixth seeds Christinna Pedersen and Mathias Christiansen of Denmark and lost in straight games. In the men’s doubles, Mannu Attri and B Sumeeth Reddy were overwhelmed by Chen Hung Ling and Wang Chi-Lin 9-21, 10-21.
+Among the important roles of a central bank is to control the cost of money by changing interest rates. This role itself gives it immense power to stimulate or slow the economy. Apart from this, the central banks — in our case Reserve Bank of India — formulate, implement and monitor the country’s monetary policy. It monitors the financial system by prescribing broad parameters of banking operations to ensure the public has confidence in the system and protects depositors’ interest.
-===Sindhu, Srikanth lose in quarters===
+The bank also monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency in circulation. The central bank also does merchant banking for the government as well as other banks.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F22&entity=Ar03012&sk=C28E9324&mode=text  Suhas Nayse, September 22, 2018: ''The Times of India'']
-Indian challenge in China Open Badminton tournament came to an end with the defeats of PV Sindhu and Kidambi Srikanth at Changzhou on Friday. Third seed Sindhu went down fighting against Chen Yufei of China 11-21, 21-11, 15-21 in 52 minutes. The fifth seed Chinese shattered the hopes of the Indian with a commanding performance.
+'''How independent is the RBI?'''
-The 2016 champion Sindhu had a psychological advantage going into the match against the local girl as she was leading 4-2 in terms of head-to-head record. Sindhu had also won the last two encounters against the Chinese but on Friday she failed to extend her dominance and crashed out.
+Like other central banks, RBI is an independent entity within the government. It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and up to four deputy governors. There are 10 other directors nominated by the government, two government officials and four non-official directors from local boards. There are also four local boards in Mumbai, Kolkata, Chennai and New Delhi to advise the central board on local matters. Local board members are nominated by
-In the deciding third game, Yufei established an early lead and maintained it till the end. The only survivor in the men’s singles Srikanth also bowed out. The seventh seed found third seed Kento Momota too hot to handle and lost 9-21, 11-21 in 28 minutes.
-The in-form Japanese made the light work of former world No. 1 and stormed into the semifinals in style. The last week champion at the Japan Open look set to pocket yet another title in the dream season. With this crushing win, Momota now improved his career record against Srikanth to 8-3. It was second quarterfinal defeat for Srikanth in as many weeks.
+'''Where is the most powerful central bank?'''
-Indian coach Amrish Shinde was disappointed with the result but admitted that Sindhu fought gallantly.
+While it controls the world’s largest economy, US's Federal Reserve Bank also issues treasury bills to raise money to finance spending. These US securities are bought by other nations and their value is based on the price of the US dollar. If the Fed lowers interest rate and makes dollar cheaper to borrow, the pinch will be felt by all other economies. Similarly, a stronger dollar will benefit countries that hold US securities.
-===Sindhu, Srikanth ousted in QF===
+==1935-2016: Govt. vs. the RBI==
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F10&entity=Ar02105&sk=16D0D5EF&mode=text  November 10, 2018: ''The Times of India'']
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F03&entity=Ar00507&sk=05B1245C&mode=text  Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: ''The Times of India'']
+[[File: 1935-2016- tiffs between the govt. and the RBI.jpg|1935-2016: tiffs between the govt. and the RBI <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F03&entity=Ar00507&sk=05B1245C&mode=text  Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: ''The Times of India'']|frame|500px]]
-Olympic silver medallist P V Sindhu and Kidambi Srikanth were ousted from the China Open World Tour Super 750 on Friday after losing their singles quarterfinals matches here. While Sindhu yet again struggled to go past China's He Bingjiao in women's singles, Srikanth fell in straight-games to world number 3 Chou Tien Chen in the men's singles event. Third seeded Sindhu lost 17-21 21-17 15-21 to the eighth-seeded Chinese. It was Indian shuttler’s third loss to Bingjiao, who had defeated her at the Indonesia Open and French Open in July and October this year.
+''Another DG Gives Speech Attacking Centre On Lending''
-Later Srikanth paid the price for being too erratic as he lost 14-21, 14-21 in 35 minutes to Chen, who has been in good form this season with three titles from five final appearances.
+Hostilities between the Modi government and the Reserve Bank of India remained at heightened levels with a top bureaucrat taking to social media on Friday morning to mock a recent speech of deputy governor Viral Acharya. Hours later, the RBI uploaded a speech another deputy governor, N S Vishwanathan, gave at XLRI Jamshedpur earlier this week. In his speech, Vishwanathan attacked the government’s arguments for easing capital requirements, saying that it would result in banks being strong only in a “make-believe” manner.
-Earlier, the left-handed Bingjiao controlled the rallies by executing her strokes perfectly and used her deft touch to outwit Sindhu. The Indian frittered away a 8-3 advantage early on to lose the opening game but made a roaring comeback in the second before losing the decider after a late charge.
+Economic affairs secretary Subhas Chandra Garg, the finance ministry’s point person for managing ties with the RBI, fired the first salvo when he took aim at Acharya’s comment that “governments that do not respect central bank independence will sooner or later incur the wrath of financial markets”.
-Sindhu had started well to take a 4-1 lead early on before moving to 8-3 but Bingjiao managed to claw back at 9-9. Sindhu made it to 17-18 before Bingjiao pocketed the opening game. In the second game, Sindhu turned the tables as she moved to 6-5 and then grabbed a 11-7 lead. In the decider, Bingjiao was more sure-footed than Sindhu as she executed her plan well to take a 11-6 advantage at the interval. The Chinese managed to eke out a 15-8 lead before Sindhu produced a late charge to claw back to 15-16. But Bingjiao didn’t give any chance to the Indian after that as she reeled off the remaining points to cement her place in the semifinals.
-== Commonwealth Games==
+'''RBI dy guv against govt’s bid to push bank credit'''
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F04%2F16&entity=Ar02101&sk=1E251F31&mode=text  Biju BabuCyriac, Displaying Her Trademark Grit, A Resurgent Nehwal Downs Sindhu For A Famous Triumph, April 16, 2018: ''The Times of India'']
-[[File: Saina Nehwal beats PV Sindhu 21-18, 23-21, at the  Commonwealth Games, 2018.jpg|Saina Nehwal beats PV Sindhu 21-18, 23-21, at the  Commonwealth Games, 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F04%2F16&entity=Ar02101&sk=1E251F31&mode=text  Biju BabuCyriac, Displaying Her Trademark Grit, A Resurgent Nehwal Downs Sindhu For A Famous Triumph, April 16, 2018: ''The Times of India'']|frame|500px]]
+Rupee trading at less than 73 to a dollar, Brent crude below $73 a barrel, markets up by over 4% during the week and bond yields below 7.8%. Wrath of the markets?” economic affairs secretary Subhas Chandra Garg tweeted on Friday.
-One is the pathbreaker in the sport in India. The other, the opponent, is the new sensation. And when the two clashed in the final of women’s badminton at the Commonwealth Games here, spectators the world over got nearly an hour of exhilarating edge-ofthe-seat action. Former World No. 1 Saina Nehwal gave a master-class of attacking badminton to win India’s 26th gold, beating teammate and Olympic silver medallist PV Sindhu on the final day at the Games here on Sunday.
+Ironically, Garg’s very public dig at governor Urjit Patel’s hand-picked deputy came just two days after the finance ministry issued a carefully-worded statement that among other things signaled its displeasure with the RBI for airing its differences with the government.
-It was one of India’s bestever showing in a Games abroad — 26 gold, 20 silver and 20 bronze, across nine disciplines. And fittingly, India’s final gold came from the pioneering shuttler Saina, who beat Sindhu in 21-18, 23-21 in the final. The 56-minute blockbuster got the fans on the edge of their seats at the Carrara Sports Arena as the two of the world’s best players traded rallies — the best being a 64-stroke heart-stopper in the second game — and fought tooth and nail for each point.
+Vishwanathan, who unlike Acharya is a career central banker, appeared to be at odds with the government’s push to accelerate bank credit when he indicated that higher growth in lending was not desirable. “It may be noticed that in the past, high levels of credit growth due to ‘supply push’ have resulted in high corporate leverage and consequent NPAs in the banking system,” he said.
-It was a clash of contrasting styles. Saina, who opened the proceedings, took a 6-4 lead in the first game forcing the point with a superb crosscourt drop after dictating terms in a long rally. Soon she was stretching her lead to 12-6 but an agitated Sindhu pulled the next three points back to narrow the gap to 9-12.
+“We must guard against any push for dilution of standards in the name of aligning them with international benchmarks because that will be cherry-picking and will result in our banks being strong in a make-believe sense and not in reality.” This appeared to be a response to financial services secretary Rajiv Kumar’s statement last week that minimum common equity (CET) Tier I ratio as prescribed by RBI stands at 5.5% as against 4.5% under Basel III norms. A relaxation of the capital requirement to Basel III levels would enable bank to lend up to Rs 6 lakh more.
-Saina, appearing more agile now after having shed some weight during her preparations for Gold Coast, then forced an error from Sindhu at the net but the lanky Hyderabadi returned the compliment to stay in the hunt at 11-16. Even as Sindhu tried to wriggle out of the corner, Saina moved ahead to 20-14 and set up six game points. Sindhu now found a different gear to race up with her experienced teammate saving four game points, but Saina was only waiting for her chance and pulled the trigger smashing the winner to an open court to take the first game at 21-18.
+But, according to the deputy governor, current levels of provisions maintained by banks may not be enough to cover the expected losses due to defaults, and hence adequate buffers must be built to absorb the expected losses which are under-provided. Vishwanathan said that bank credit was already growing at 14% year on year in line with GDP growth. Within this, bank loans to NBFC during this period grew 48.3%.
-The start of the second game saw Saina drifting a bit and Sindhu did the needful to stretch her lead to 9-6 following a 39-stroke rally which Saina netted. A mix of Sindhu’s class and Saina’s errors helped her pull away to 15-10, but the latter was in no mood to let the momentum shift. She came up with series of powerful smashes that Sindhu couldn’t return.
+According to Vishwanathan, international capital norms have been designed based on internationally observed recovery rates. However, the loss given defaults are far more than those observed internationally. He also shot down arguments that some defaults are caused by external circumstances and that regulations should treat them differently based on the reasons behind them. “This is a fallacy. There are two issues here: recognition and resolution. The recognition of default or accounting for deterioration in the quality of asset should be independent of the reasons for such default or deterioration.”
-At 14-15, Saina appeared to have the match under control, but Sindhu, who recovered from a minor injury, was in no mood to go down without a fight as she ran up to an 18-14 lead and then took it to 19-16. But Saina was not to let her attacking ways go and won a draining 64-shot rally, it lasted all of 68 seconds, before going level at 19-19.
+===When mediating PM, diplomatic governors averted crisis===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02013&sk=A0864585&mode=text  Mayur Shetty, December 11, 2018: ''The Times of India'']
-Sindhu then served on game point but it was soon 20-20. Next it was Sindhu’s turn to save a match point but it was all over soon with Saina smashing away to victory getting past of the best of retrievals from Sindhu. It was an epic clash and in the end, her experience and a seemingly newfound ability from Saina came to fore announcing that a change of guard at the top will still take some time.
-'''Srikanth ends second best'''
+Public statements and disclosures by former governors — Y V Reddy, D Subbarao and Raghuram Rajan — in their writings have shown that there have been disagreements between the finance ministry and the RBI. But none of these disputes ever boiled over to a situation leading to the governor’s resignation.
-World No. 1 Kidambi Srikanth was forced to settle for silver after losing a riveting match in the men’s singles final to Malaysian Lee Chong Wei 21-19, 14-21, 14-21.
+According to central bank insiders, in the past governors have adopted a strategy of convince and compromise. Also, in the case of differences that arose during the 10-year UPA government, then Prime Minister Manmohan Singh, himself a former governor, helped in brokering peace between the RBI and the finance ministry. Even though previous governors have been bureaucrats, after coming to the RBI it is the chair that has taken over. Both Reddy and Subbarao have been extremely strong votaries of independence of the central bank after taking charge as governors. However, despite their independence they have acknowledged that the finance minister is senior to the RBI governor. In the case of Patel, his finance minister Arun Jaitley had taken a fourmonth break between May and August — a time when differences with the government were boiling over.
-Chong Wei raced to a 5-0 lead in the opener but Srikanth, who beat the Malaysian in the team event here, caught up with the 36-year-old three-time Olympic silver medalist at 7-7. The next seven points saw an array of superb strokes from both the players. The two were again level at 15-15, 17-17 and 19-19 but Srikanth kept his nose in front finding vacant spots on the court. In the end, it was Srikanth who took the game at 21-19.
+Additionally, in the past the differences were in the area of interest rates that has ceased to be an issue after the creation of the monetary policy committee (MPC), which coincided with the appointment of Patel.
-The second game, which saw a 42-stroke rally, began in the same fashion with both the players going for the deceptive angles and net flicks in addition to the power hitting. It was all even till the break at 11 but Chong Wei soon opened up a lead. The Malaysian opened up a big lead again in the third as Srikanth got buried under his errors. Chong Wei was up 7-1 in no time and from then on Srikanth had a hard time catching up.
+Past governors have also managed to handle their differences with the finance ministry using their personal connection with finance ministry officials. Former governors, Reddy and Subbarao, were both former bureaucrats and had many friends in the finance ministry. Rajan, though not a bureaucrat, had worked in Delhi as chief economic adviser where he was prepped for the position of RBI governor.
-==Denmark Open BWF Tour Super 750==
+In the case of Patel, his engagement with the finance ministry was two decades earlier as deputy to the IMF India representative. During this period, he build a friendship with Manmohan Singh.
-===Saina beats Tunjung, enters final; Srikanth loses to Momota===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F21&entity=Ar02518&sk=BE64F40C&mode=text  Manne Ratnakar, October 21, 2018: ''The Times of India'']
+There are some insiders who feel that the government’s choice of appointing outside economic experts as governor is a failed experiment as they have very little skin in the game.
-Saina Nehwal was one step away from winning her first major title in two years at the Denmark Open in Odense. However, Kidambi Srikanth was dethroned in the semifinal by world champion Kento Momota of Japan 16-21, 12-21. Momota was at his retrieving best in the semifinal. Saina steamrolled reigning junior world champion Gregoria Mariska Tunjung of Indonesia 21-11, 21-12 in just 30 minutes to book a final berth against Tai Tzu Ying of Chinese Taipei.
+Raghuram Rajan had made it clear that he had a job at Chicago Booth waiting for him when his term ended. Similarly, many expect that Patel would pursue academic interests after his stint as governor.
-Saina told Badminton Europe that she is happy to be in a final after a long gap. "I feel great to be playing finals. After the surgery I have not been getting my rhythm. But after the Asian Games, I started playing well and moving well. Even at the Korea Open I lost a very close match against Okuhara. She went on to win that tournament. I had to be patient and here I am playing the finals. Belief makes a lot of difference," Saina said, adding that semifinal is not as easy as the scoreline suggests.
-"It's not easy to play someone who plays so many tricky shots. It was tough but I was able to pick those shots. I moved well and my shots were much more sharper."
+==1956-57: Pt. Nehru vs. Sir Rau==
+[https://timesofindia.indiatimes.com/india/nehru-letter-to-rbi-may-give-modi-government-ammunition-in-urjit-row/articleshow/66503739.cms  Sidhartha, November 5, 2018: ''The Times of India'']
-Incidentally, this was Saina's first Super Series final in two years after she won the Australian Open. The 28-yearold, who was in full flow against Japanese shuttlers Akane Yamaguchi in second round and Nozomi Okuhara in the quarters, was at her best against Mariska on Saturday.
-The world No.19 Indonesian, who has never beaten a top ranked player so far, proved no match for the Indian. Saina toyed with Mariska.
+The traditionally fraught nature of government-RBI relations goes back to the early days of the central bank when Sir John Osborne Smith resigned his governorship in 1937 following differences with the colonial government over interest and exchange rates.
-Women's doubles pair of Ashwini Ponnappa and Sikki Reddy went down to top seeds Yuki Fukushima and Sayaka Hirota of Japan 14-21, 12-21.
+But it is Jawaharlal Nehru’s stormy exchanges with Sir Benegal Rama Rau, leading to his resignation as RBI governor, that has tickled the interest of people in the finance ministry – and may provide them with an effective counter to the Rahul Gandhi-led Congress’s attack on the government for undermining the autonomy of the central bank.
-===Saina beats Yamaguchi for first time in 4 years ===
+Rau, a civil servant, was the fourth governor of RBI and quit in January 1957 after seven and a half years in the saddle when Nehru sided with finance minister TT Krishnamachari and made it clear that RBI was part of “the various activities of the government”.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F19&entity=Ar02613&sk=94D968AC&mode=text  Manne Ratnakar, Saina ends the jinx, October 19, 2018: ''The Times of India'']
+Rau had accused TTK of “rude behaviour” over differences that began over a Budget proposal. TTK had referred to RBI as a “section” of the finance ministry and described it as “reserved”, as well as expressed doubts in Parliament “as to whether it is capable of doing any thinking”.
-''Beats Yamaguchi For First Time In 4 Years To Enter QF''
+In a letter to Rau, India’s first Prime Minister and Rahul Gandhi’s great-grandfather, wrote: “It (RBI) has to advise government, but it also has to keep in line with government.” He suggested the governor could resign if he thought that it was not possible to continue; Rau put in his papers a few days later.
-Saina Nehwal was at her fluent best as she outclassed world No. 2 Akane Yamaguchi of Japan 21-15, 21-17 to move into the quarterfinals of the Denmark Open BWF World Tour Super 750 tournament in Odense on Thursday.
+Nehru said it would be “completely absurd” if the central bank followed a different policy because it did not agree with the government’s objectives or its methods.
-This was Saina’s first victory over the Japanese in four years. The last time Saina triumphed against Yamaguchi was in the China Open back in 2014.
+“You have laid stress on the autonomy of the RBI. Certainly it is autonomous, but it is also subject to the central government’s directions…. Monetary policies must necessarily depend upon the larger policies which a government pursues. It is in the ambit of those larger policies that the RBI can advise. It cannot challenge the main objectives and policies of government,” asserted Nehru.
-Sameer Verma also continued his good run and joined Saina in the quarterfinals along with the women’s doubles pair of Ashwini Ponnappa and Sikki Reddy. Extending his giant-killing run, Verma, who ousted world No.2 in the first round, accounted for Asian Games champion Jonatan Christie in the second. Verma registered a hard fought 23-21, 6-21, 22-20 victory against the Indonesian in the one hour-10 minute encounter. Verma will now square up against the winner of the match between Kidambi Srikanth and Lin Dan of China.
+“When you talked to me I pointed out to you that it was for the central government to lay down policies and the RBI could not obviously have policies contrary to those of the central government. You agreed with this. And yet I find in your memorandum a different point of view,” he added.
-Unseeded pair of Ashwini and Sikki knocked out seventh seeded south Koreans Lee So Hee and Shing Seung Chan in three games 18-21, 22-20, 21-18.
+The RBI believed that TTK’s Budget proposal would effectively push up interest rates and forwarded a resolution of the central board. “The board requests the government to consult RBI in advance on all matters which significantly affect the monetary structure and policy,” the board said on December 12, 1956.
-Earlier, Saina eased past Yamaguchi in just 36 minutes. This is Saina’s first victory against Yamaguchi since November 2014. The Indian ace lost to the Japanese shuttler six consecutive times before the Denmark meeting. A relieved Saina, who was struggling in major BWF events, told Badminton Europe that she was happy to break the jinx against Yamaguchi.
+The same day, Nehru wrote to the governor pulling him up for his “improper approach” which was seen to be “agitational” against the Centre.
-===Saina loses to Tai in the final===
+A fortnight later, Rau responded to Nehru’s letter saying that despite differences on several issues, nothing had leaked out from RBI. He then wrote that the government could reject RBI’s advice though it should be given an opportunity to place all facts and its view before a decision was taken on “technical and sometimes complicated monetary issues”.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F22&entity=Ar02405&sk=D387627F&mode=text  Manne Ratnakar, Saina fails to solve Tai puzzle yet again, October 22, 2018: ''The Times of India'']
+The then governor also took “strong exception” to some of Nehru’s comments on not supporting government policies and said the consultations over the Budget proposal were inadequate.
-Saina Nehwal did her best, came back strongly but couldn’t find a way to get past Tai Tzu Ying in the final of the Denmark Open BWF Tour Super 750 tournament in Odense on Sunday.
+In the Budget, the government had proposed to increase the stamp duty on an instrument used by lenders to get loans at a discount to RBI’s key policy rate – the bank rate. RBI argued that the higher stamp duty, which it said was decided without prior consultation, would push up the bank rate by half a percentage point.
-Once again, the world No.1 from Chinese Taipei arguably proved the most difficult opponent of Saina’s career. Though Saina won a game, raising hopes of a fine come-from-behind victory, Tai still reigned supreme at 21-13, 13-21, 21-6.
+Parallels are being drawn between the developments six decades ago and the current power tussle between the Centre and RBI – although in that instance, the central bank had gone out on a limb to criticise a Budget proposal whereas it’s the government that is now unhappy with the RBI for not taking on board its concerns about the economy.
-Tai became the first shuttler from Taipei to clinch the Denmark Open title. Though she has won almost all the Super Series titles, Denmark always proved a roadblock for her. On Sunday, despite a little bother provided by Saina, that record was set right.
+While most governments and the central bank have had differences over issues ranging from interest rates to regulations, the current rift has widened to an extent that the finance ministry has sought formal consultations with the governor in what is one step short of invoking Section 7 of the RBI Act, a provision that has never been used.
-In her element right from the first point, Tai repeatedly changed her tactics to quell a determined Saina, who fought ferociously for most part of the final.
+The government has been pushing RBI to address its concerns related to providing support to non-banking finance companies, ravaged by the impact of defaults by IL&FS, in addition to addressing the credit needs of small businesses and reviewing the prompt corrective action (PCA) framework dealing with weak banks.
-Her crafty net game, loaded with a lot of disguise and accurate on-the-line smashes earned her easy points as it came coupled with her effortless retrieving ability. Tai was already leading 11-5 at the break.
+==2014, PM Manmohan Singh: Governor must heed govt==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F07&entity=Ar00308&sk=C7215202&mode=text  Guv must heed govt, Manmohan said in ’14, November 7, 2018: ''The Times of India'']
-Saina upped the ante and played some brilliant smashes but Tai did well to protect the big lead she had gained.
-In the second game, Saina pushed the shuttle back and hardly allowed Tai to come near the net. The ploy worked as Tai's returns looked weak giving the Indian an upperhand. Saina took an 8-3 lead and maintained that control throughout the game. Despite losing the second game, Tai realised where she was going wrong. Towards the end, she had begun returning sharply packing the bird with a lot of pace. This is her 11th straight loss against Tai since 2013. But the silver lining for the Indian was that she had managed to extend the tie to three games for the first time in three years. The last time Saina won a game against Tai was in December 2015.
+The dynamic between the RBI and the government is one of give and take but if the finance minister insists on a certain course of action, his view will need to prevail, former PM Manmohan Singh has said in his daughter Daman Singh’s book “Strictly Personal: Manmohan and Gursharan”.
-'''Momota triumphs'''
+Recalling his tenure at the central bank, Singh says, “There is always give and take. I had to take the government into confidence. The governor of the Reserve Bank is not superior to the finance minister. And if the finance minister insists, I don’t see that the governor can refuse, unless he is willing to give up his job.”
-Japan’s Kento Momota won the men’s singles title with a 22-20, 16-21, 21-15 victory against Chou Tien Chen of Chinese Taipei in the final.
+Singh’s comments in the 2014 book are significant in the context of tensions between the Centre and RBI governor Urjit Patel amid heated commentary on the autonomy of the central bank. Singh says that after recording a divergent point of view, the governor can insist on directions from the government which would then need to be followed.
-=== Sameer stuns Shi in major upset===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F18&entity=Ar03014&sk=B236CCD0&mode=text  Manne Ratnakar, Sameer stuns Shi in major upset; Marin crashes out, October 18, 2018: ''The Times of India'']
+'''Singh speaks of Caparo, tension with then FM Pranab Mukherjee'''
-Sameer Verma caused one of the major upsets of the tournament when he knocked out world No.2 Shi Yuqi of China 21-17, 21-18 in the first round of the Denmark Open BWF Tour Super 750 in Odense, late on Tuesday.
+Singh speaks of tensions with then finance minister Pranab Mukherjee over the move of the Londonbased Caparo group, in which business magnate Swraj Paul and his family held a majority share, to buy shares of Escorts Group. The UK-based business initiated the purchase of shares even before the RBI granted it permission. The RBI informed the government that it intended to reject Caparo’s application.
-The world No.23 Indian took just 44 minutes to oust Yuqi. Verma will now take on world No.13 Jonatan Christie of Indonesia, who defeated Wong Wing Ki Vincent of Hong Kong 17-21, 21-18, 21-13. Verma enjoys a 1-0 win-loss record against Christie.
+The book notes that the government of the day, however, did not have any misgivings and asked the RBI to grant permission, which it did. The matter went to court and the Supreme Court finally held the government’s order to the RBI and the permission granted by the central bank to be valid.
-Seventh seed Kidambi Srikanth eased into the second round with a 21-16, 21-10 victory against Hans-Kristian Solberg Vittinghus of Denmark. Srikanth will face multiple world and Olympic champion Lin Dan of China in the second round. Though Lin Dan has a 3-1 career record against Srikanth, the former world No.1 has been struggling in the last few months.
+Asked about the case, Singh says, “Well, it was a situation that brought me in conflict with the government. I have given the view of the Reserve Bank, but said the government could always overrule it. This was a government scheme... Ultimately, it was resolved by the government giving a directive to the RBI.”
-The other Indian in men’s singles, Sai Praneeth will take the court late on Wednesday. Women’s singles also witnessed another major upset as reigning world and Olympic champion Carolina Marin of Spain suffered a 19-21, 21-14, 19-21 shock defeat to local girl and world No. 20 Mia Blichfeldt. Ashwini Ponnappa and Sikki Reddy was the only Indian doubles team to clear the first round.
+Singh makes it clear that the government would have liked the RBI to have acted on its own with regard to the application under a portfolio investment scheme for NRIs. But he said the RBI did not act until the explicit approval of the Cabinet Committee on Political Affairs was conveyed to the central bank. In a second case the book refers to, Singh had strong reservations over the application of the Bank of Credit and Commerce International to open a couple of branches in India. Permission was almost granted when Charan Singh was PM and was finally cleared by the Congress government in 1983.
-===Srikanth beats Lin Dan===
+The government, unhappy with the RBI’s power to issue bank licences, sought to take these powers away. “I sent my letter of resignation to Pranab Mukherjee and the PM. Later, I managed to persuade Mrs Gandhi that the Cabinet decision was not proper... they dropped the idea,” Singh says.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F20&entity=Ar02204&sk=DF11AD1C&mode=text  October 20, 2018: ''The Times of India'']
+==10 flash points between Govt., RBI: 2017-18==
+[[File: 2017, 2018- tensions between the Government and the RBI under Patel, a chronology; 2019, Nov- The RBI’s Central board of directors.jpg|2017, 2018: tensions between the Government and the RBI under Patel, a chronology <br/> 2019, Nov: The RBI’s Central board of directors <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F19&entity=Ar02902&sk=637D344F&mode=text  Sidhartha & Mayur Shetty   November 19, 2018: ''The Times of India'']|frame|500px]]
-Kidambi Srikanth defeated the legendary Lin Dan for the second time in his career to set up an all-Indian quarterfinal against Sameer Verma at the Denmark Open here. World number six Srikanth bounced back to beat the world number 14 from China 18-21, 21-17, 21-16 in the second round clash played.
+[[File: 10 flash points between Govt., RBI- 2017-18- Part I.jpg|10 flash points between Govt., RBI- 2017-18- Part I <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02205&sk=E9E288E4&mode=image  October 30, 2018: ''The Times of India'']|frame|500px]]
-Dan, a two-time Olympic gold medallist and five-time world champion, is not the player he used to be but is still a force to reckon with. It was a fifth meeting between Srikanth and Dan and the Chinese great won the last time they played, in the quarterfinals of the 2016 Rio Olympics. Srikanth had famously scored his maiden win over Dan to win the 2014 China Open.
+[[File: 10 flash points between Govt., RBI- 2017-18- Part II.jpg|10 flash points between Govt., RBI- 2017-18- Part II <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02205&sk=E9E288E4&mode=image  October 30, 2018: ''The Times of India'']|frame|500px]]
-After a tough match against the Chinese, Srikanth will have to play fellow Indian Verma in the quarterfinals to be held later on Friday. World number 23 Verma had beaten 2018 Asian Games gold medallist, Jonathan Christie of Indonesia, in his second round match.
-==French Open BWF==
+'''See graphics''':
-===Sindhu, Srikanth exit ===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F28&entity=Ar02807&sk=F85B0CCE&mode=text  Sindhu, Srikanth exit French Open, October 28, 2018: ''The Times of India'']
+''2017, 2018: tensions between the Government and the RBI under Patel, a chronology <br/> 2019, Nov: The RBI’s Central board of directors''
-PV Sindhu and Kidambi Srikanth crashed out in the quarterfinals of the French Open after suffering straight-game defeats in their respective matches as India’s campaign ended in the singles events at the BWF World Tour Super 750 tournament. Third seed Sindhu looked a pale shadow of herself as she lost 13-21, 16-21 in 40 minutes against seventh seed He Bingjiao of China.
+''10 flash points between Govt., RBI- 2017-18- Part I''
-It was Sindhu’s second consecutive loss at the hands of the Chinese shuttler this year after her straight-game defeat in Indonesia Open in July. By virtue of this win, Bingjiao extended her head-to-head record to 7-5 against the Indian.
+''10 flash points between Govt., RBI- 2017-18- Part II''
-To make matters worse for India, fifth seed Srikanth gave a good account of himself but eventually lost steam against top seed Kento Momota of Japan. Satwiksairaj Rankireddy and Chirag Sen suffered a straight-game loss to world no 1 pair of Marcus Fernaldi Gideon and Kevin Sanjaya Sukamuljo in the semifinals.
+===Points of friction===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F02&entity=Ar00508&sk=4933A620&mode=text  Sidhartha, ‘RBI’s refusal to engage forced govt to mull extreme legal step’, November 2, 2018: ''The Times of India'']
-'''Ayhika wins silver, Anthony-Sanil clinches bronze in Belgium Open TT'''
-New Delhi: Ayhika Mukherjee settled for a silver medal after going down 1-3 to Korea’s Youjin Kim in the final of the ITTF Challenge Belgium Open in the under-21 women’s singles category. Anthony Amalraj and Sanil Shetty too fought their way into the medals’ bracket, bagging a bronze in the men’s doubles. Ayhika put up a brave fight in the summit clash but Kim proved to be a tough nut to crack in the end. In the semifinals, Ayhika had defeated Hong Kong’s Chengzhu Zhu 3-1 to enter the finals.
+[[File: Friction between the Government and the Reserve Bank of India- Part I.jpg|Friction between the Government and the Reserve Bank of India- Part I <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02003&sk=B8EACFF5&mode=image  December 11, 2018: ''The Times of India'']|frame|500px]]
-In men’s doubles, Amalraj-Shetty started slowly, losing a tight opening game 10-12 to the Belgian pair of Olav Kosolosky and Laurens Devos. They had a tough second game too which they eventually managed to win 15-13. There was no stopping them thereafter.
+[[File: Friction between the Government and the Reserve Bank of India- Part II.jpg|Friction between the Government and the Reserve Bank of India- Part II <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02003&sk=B8EACFF5&mode=image  December 11, 2018: ''The Times of India'']|frame|500px]]
-'''Sethuraman holds Anand'''
+'''See graphics''':
-Isle of Man: Grandmaster S P Sethuraman played out an easy draw as white against five-time world champion Viswanathan Anand in the seventh round of Isle of Man International Chess tournament here on Saturday. Both Anand and Sethuraman inched themselves up to five points out of a possible seven and shared the joint eighth spot. Michael Adams of England took advantage of this draw-melee to join the six overnight leaders on 5.5 points defeating erstwhile joint leader Abhijeet Gupta.
+''Friction between the Government and the Reserve Bank of India- Part I''
+''Friction between the Government and the Reserve Bank of India- Part II''
-'''Greco Roman wrestlers out of Worlds'''
-Budapest: India’s campaign at the World Championship ended with Greco Roman wrestlers on the final day of the competitions, here on Saturday. Of three grapplers in action, only Hardeep managed to win a bout when he downed Morocco’s Choucri Atafi 8-4 in the 1/16 in the 97kg category. Later he lost his 1/8 bout 1-4 to Laokratis Kesidis from Greece.
+'' ‘Guv Patel, Team Not Happy With An Assertive Board’ ''
-===Srikanth, Saina in QF===
+The Modi government was driven to consider the extreme step of invoking the never-before-used Section 7 of the RBI Act by central bank governor Urjit Patel’s reluctance to engage with stakeholders, according to highly placed sources in New Delhi. “He was scarce and unavailable to bankers, industry and market players even on matters of pressing concern. We were left with no choice. It was the only way we could bring the central bank to the table,” one person close to the development told TOI.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F26&entity=Ar03312&sk=412B622C&mode=text  Srikanth & Saina in French QF, October 26, 2018: ''The Times of India'']
+This confirms TOI’s exclusive report of Monday that tensions between the Patel-led RBI and the government had “come to a head” because the two were not only not able to see eye-to-eye on a host of issues, there had also “been an almost complete breakdown in communication” between them.
-Defending champion Kidambi Srikanth and India ace Saina Nehwal made their way to the quarterfinals of the USD 750,000 French Open BWF World Tour Super 750 here Thursday. Srikanth showed great determination to outwit Korea’s world no 25 Lee Dong Keun 12-21, 21-16, 21-18 in a secondround clash that clocked an hour and 13 minutes. The Indian had lost twice to the 27-year-old Korean in the past two meetings.
-Saina, who had reached the finals at Denmark Open last week, continued her good run by outwitting former World champion Nozomi Okuhara of Japan 10-21, 21-14, 21-17 in another exciting contest.
+'''RBI didn’t make public decisions taken at last board meeting'''
-==Hong Kong Open==
+The move could be significant as a consultative process sets the stage for a government to issue directions to the RBI if there is no agreement,” the report added.
-===Srikanth, Sameer enter quarter-finals===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F16&entity=Ar02805&sk=BFA3A426&mode=text  November 16, 2018: ''The Times of India'']
+No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history. The Section says, “The central government may from time to time give such directions to the bank as it may, after consultation with the governor of the bank, consider necessary in public interest.”
-Former world No.1 Kidambi Srikanth and Sameer Verma sailed into the quarterfinals of the Hong Kong Open while PV Sindhu was shown the door in Kowloon.
+The Section 7 reference to RBI was the first formal step towards discussing a troika of concerns with RBI — credit flow, liquidity, and problems facing medium and small businesses — failing which the central bank would have to face the “legal instrument of last resort”, which would be tantamount to a vote of no-confidence in the gover nor.
-In a see-saw battle which went down to the wire, Srikanth defeated compatriot HS Prannoy 18-21, 30-29, 21-18 while Sameer got a walkover against Chen Long of China. After winning a exhausting second game in which the lead changed hands a number of times, Srikanth secured a seven-point lead (11-4) in the third game. But Prannoy clawed back and caught up with Srikanth at 16-16. Thereafter, Srikanth won the big points to clinch the contest.
+The finance ministry issued a carefully-worded statement saying the government and the RBI should be “guided by public interest and the requirements of the Indian economy”.
-In the quarters, Srikanth will square up against the winner of the tie between Kenta Nishimoto of Japan and Kantaphon Wangcharoen of Thailand. Sameer will face qualifier Lee Cheuk Yiu of Hong Kong. Sindhu lost to former world No.2 Ji Hyun Sung of Korea 24-26, 20-22 in a close match.
+The government had hoped that RBI would go by the board’s collective view instead of the governor and his deputies charting the course of the financial sector by themselves. But the central bank — which also doubles up as regulator for banks and some market segments — did not seem to go by the view of the directors. Among the 18 directors on the central board, 11 are independent, with five RBI officials and two finance ministry bureaucrats making up the complete cast.
+At last week’s board meeting, it was decided that four decisions that had been taken would be made public. However, RBI, which it now appears, had reluctantly acquiesced into the majority decision, decided otherwise and made no disclosure about the “unanimous” calls. The radio silence came as a surprise because the directors had left the meeting convinced that RBI officials were on the same page.
-'''Lakshya in pre-quarters'''
+At the marathon meeting, which had over 20 items on the agenda, the RBI brass had suggested that the issues that could not be decided, would be taken up at next meeting. The meeting was to be held post-Diwali. Accordingly, Patel verged on announcing a specific date but was stalled in his tracks by a top RBI official, who suggested that it was time to wrap up. Thus, the date remained undecided.
-Lakshya Sen and two Indian doubles pairs made it to the pre-quarterfinals of the BWF World Junior Championship in Markham, Canada, on Wednesday.
+In fact, RBI’s announcement of November 19 as the date when the board would meet next, came only after some independent directors, frustrated by the delay, forced the management on Wednesday to take a decision, said sources. While the government has faced flak for nominating S Gurumurthy and Satish Marathe on RBI’s central board, as well as removing Nachiket Mor, people close to the decision said the move was necessary and aimed at turning it from merely being a rubber stamp to a body which could hold its own while engaging with the bank leadership.
-Fourth seed Lakshya made short work of Giovanni Toti of Italy 21-7, 21-13. He will face ninth seed Chen Shiau Cheng of Chinese Taipei on Thursday.
+This was a significant turn. For over the years, it was the Central Committee of the Board which had become the “real” decisionmaking body with the board starving itself of powers to regulate by delegating those to the CCB.
-Men’s doubles duo of Srikrishna Sai Kumar Podile and Vishnu Vardhan Goud defeated Joel Hansson and Melker Z-Bexell of Sweden to move into the pre-quarterfinals.
+The sudden power shift, with the board asserting itself and demanding a say, does not seem to have gone down well with the RBI brass, prompting howls of protest about government interference, said a top official who has been watching the evolving dynamics on Mint Road.
-In women’s doubles pair of Aditi Bhatt and Tanisha Crasto downed Dilmi Das and Anurangi Masakorala of Sri Lanka in straight games 22-20, 21-10.
+Sources said that at the last board meeting, financial services secretary Rajiv Kumar made a detailed presentation on the need to align Indian standards with global norms instead of stiffening them unnecessarily. The suggestion was an attempt to convince RBI to tweak its rules for capital and PCA. There were also complaints about liquidity shortage and Gurumurthy flagged the concern about inadequate fund availability for small businesses.
-===Kidami Srikanth, Sameer Verma lose===
+While most of the board, including corporate sector representatives agreed with the view, RBI representatives, supported by some of the independent directors, did not agree.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F17&entity=Ar02611&sk=83B62C78&mode=text  Indian challenge ends in HK, November 17, 2018: ''The Times of India'']
+===2017, 2018: tensions under Patel ===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F29&entity=Ar00302&sk=ECF78AAA&mode=text  Sidhartha & Mayur Shetty, Tensions between Patel-led RBI, govt coming to a head?, October 29, 2018: ''The Times of India'']
-India’s challenge ended with Kidami Srikanth and Sameer Verma being knocked out of the Hong Kong Open BWF Super 500 event in Kowloon.
-Fourth seed Srikanth went down to eighth seed Kenta Nishimoto of Japan 17-21, 13-21. This was Srikanth’s first loss against Nishimoto in four meetings. Later, Sameer Verma faltered against qualifier Lee Cheuk Yiu of Hong Kong 15-21, 21-19, 11-21. The only consolation for the shuttlers this year was Sindhu reaching the finals of three major events.
+In New Delhi and Mumbai’s corridors of power and money, the growing schism between the government and the RBI, and particularly its governor Urjit Patel, has been the subject of much talk since the early months of this year.
-However, Sindhu qualified for the yearend event in China. But with only two more qualifying tournaments left — Syed Modi International and Scottish Open — Srikanth and Sameer are unlikely to make the cut. Only eight players qualify in each category and Srikanth is placed 14th spot and Sameer 12th. Sindhu is fifth in the qualifiers list.
+During this time, not only have the two not seen eye-to-eye on a host of issues, there has been an almost complete breakdown in communication between the government and RBI.
+The simmering differences have now come to a head with RBI’s deputy governor Viral Acharya – who is widely seen to have been brought in by Patel from his professorial position in New York University – on Friday clearly hinting at government interference and emphasising the need for autonomy (TOI had front-paged his remarks in its October 27 edition).
-'''Lakshya, doubles pair in quarters'''
+The tension has triggered fevered speculation about Patel’s fate. Not only does he appear highly unlikely to get an extension beyond the threeyear term that ends next September, questions have arisen over his continuance. Patel did not respond to a message from TOI.
-Meanwhile, Lakshya Sen and the men’s doubles pair of Srikrishna Sai Kumar Podile and Vishnu Vardhan Goud entered the quarterfinals of the BWF World Junior Championship in Canada.
+Some people in the NDA government have gone so far as to acknowledge in private that “even Raghuram Rajan was better than this” — and Patel’s predecessor didn’t leave on the best of terms.
-Lakshya beat Chen Shiau Cheng of Chinese Taipei 15-21, 21-17, 21-14. Lakshya will face Malaysia’s Aidil Sholeh Ali Sadikin next. Srikrishna and Vishnu eased past Dwiki Rafian Restu and Bernadus Bagas Kusuma of Indonesia 21-11, 21-17. They will face tenth-seeded Koreans Tae Yang Shin and Chan Wang.
-==India Open: PV Sindhu, sixth loss in a final since Olympics==
+''Govt, RBI clashes on at least 6 issues in ’18 alone''
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F05&entity=Ar01913&sk=328EA05F&mode=text  Saumyajit Basu, Sindhu slips in the final, February 5, 2018: ''The Times of India'']
+A person in the NDA government told TOI a few months ago, “After Rajan, it’ll look bad if Patel is asked to go.” And people who have a sense of Patel’s thinking say that he knows the government won’t keep him on beyond his current term, so he doesn’t really care about being in its good books.
-''Zhang Is The New Champion; Shi Yuqi Claims Men’s Crown''
+In 2018 alone, there have been at least half-a-dozen issues on which the two have taken opposing stands. While the spat began with the government unhappy with the inflation-focused RBI for not cutting interest rates – and even raising them – it spilled over into regulation, something the central bank believes is its exclusive domain.
-In the end, a Chinese and an American of Chinese descent swept the honours on the final day.
+RBI’s February 12 circular on classification of non-performing assets and norms of loan restructuring was the next flashpoint. The government saw it as overly harsh, and indeed it drove all but two staterun lenders into the red.
-After Shi Yuqi won the men’s singles title to become the first Chinese to do so in the India Open, Beiwan Zhang taught PV Sindhu such a bitter lesson that she refused to attend the customary aftermatch press meet on Sunday evening. For Sindhu, it was her sixth loss in a final since her Olympic silver, to go with two title wins.
+Around the same time, as the Nirav Modi fraud broke, the government hit out at RBI on supervision, drawing an almost-immediate rebuttal with Patel seeking more powers to oversee public sector banks so that they are at par with their private sector peers.
-Sindhu kept hopes alive till the very end but Zhang looked destined to write a beautiful story of her own. Having already scalped Saina Nehwal on Friday, she upstaged Sindhu 21-18, 11-21, 22-20 to win her first Tour title to fulfil a longcherished dream.
+In addition, the government has been insisting that RBI step in to provide relief to non-banking finance companies (NBFCs), which are grappling with a cash crunch after IL&FS defaulted on repayments. The central bank has refused to play ball.
-“I wanted to win a tour title this year,” the world No. 11 had said after her quarterfinal victory over Saina. That she could tilt the tightly-fought final game on Sunday her way, is something she would savour for long. “It is the best moment of my career,” the 27-old Zhang said after matching the world No. 4 point for point.
+What has also irked the central bank brass is the way in which Nachiket Mor was removed from the RBI board more than two years before his term was to end without formally informing him. Mor’s removal was seen to be linked to his vocal opposition to the government's demand for a higher dividend.
-“I used the smash more than usual to quell Sindhu, who seemed to be under a lot of pressure. She was playing in front of the home crowd. I had nothing to lose,” said a beaming Zhang, before rushing off to catch the earliest flight out.
+In his strongly worded speech late last week, RBI deputy governor Viral Acharya said, "Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution".
-While the fifth seeded Zhang pocketed $26,250 and 9200 ranking points for her effort, Sindhu had to be content with $13,300 and 7800 ranking points.
+Patel is said to have virtually been incommunicado for the past three days, heightening suspense ahead of Monday's meeting of the RBI board, the second such interaction in less than a week. Last week’s meeting was stormy by most accounts with recently-nominated director and SJM activist S Gurumurthy seeking RBI’s intervention to help small businesses, while government nominees made a detailed presentation on the need to bring capital norms in line with global standards instead of making them stiffer. The change is seen to be crucial to get weak banks that are now under RBI’s prompt corrective action out of the classification. This would lift some of the curbs on their lending and expansion.
-Unlike Zhang, Shi Yuqi used the smash with rare precision to undo Chou Tien’s challenge. What Lin Dan couldn’t achieve in his few attempts, Yuqi did it in his first. “I am not a big fan of Super Dan,” said the champion moments after he calmly decimated Chou Tien Chen 21-18, 21-14. Even trailing till 17 in the first game, the 21-year old Chinese never looked ill at ease. Armed with an intelligent all-court game programmed by anticipation, Yuqi even returned Chou Tien’s supposed winners, much to the frustration of the Chinese Taipei player. He clocked four points on the bounce to reach game point and logged home the first with a lot of confidence.
+In remarks made on Saturday that were seen to be in response to Acharya’s, although he didn’t name RBI, finance minister Arun Jaitley said regulators need to have wide-ranging high quality discussion with all stakeholders. “I think, for any regulatory mechanism, stakeholder consultation has to be of a very high quality, which will probably lead to a revisiting of traditional thoughts and opinions. And that’s why, (when) several regulators now publish their approach papers or tentative drafts, they hold hearings, meet individuals, meet groups of stakeholders together and improve upon what’s being said.”
-In the second, however, Yuki didn’t let Chou Tien nose ahead. Consummately in control and using the smash only when absolutely sure of it being a winner, Yuki showed that his second singles title, after the French Open in 2016, was just a dawn of a shining day ahead. “He is sure to make the China’s Thomas Cup team,” said an official accompanying the China team.
+A separate payments regulator has been another friction point with RBI stating its position publicly on why it did not support the move. In fact, it went to the extent of releasing its dissent note on a separate regulator on its website.
-RESULTS (ALL FINALS) — Men's singles 4-Shi Yuqi bt 3-Chou Tien Chen 21-18, 21-14 ; Women's singles 5-Beiwen Zhang bt 1-PV Sindhu 21-18, 11-21, 22-20; Men's doubles: 1-Marcus Gideon/ Kevin Sanjaya bt 4-Kim Astrup/Anders Skaarup Rasmussen 21-14, 21-16; Women's doubles: 3-Greysia Polii/ Apriyani Rahayu bt 2-Jongkolphan Kititharakul/Rawinda Prajongjai 21-18, 21-15; Mixed doubles: 5-Mathias Christiansen/ Christinna Pedersen bt Praveen Jordan/ Melati Daeva Oktavianti 21-14, 21-15.
+People in the government said the tension should not be seen through a government versus regulator prism. They argued that the onus of taking the board along rests with the governor.
-==Indonesia Open BWF==
+They also denied it was trying to encroach on RBI’s turf, but added that institutional autonomy should be a means for achieving faster growth rather than an end in itself.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F07%2F07&entity=Ar03016&sk=F720CBF1&mode=text  Manne Ratnakar, Sindhu, Prannoy bow out as Indian challenge ends, July 7, 2018: ''The Times of India'']
+===2018, Nov: The appearance of a truce===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00314&sk=1E299772&mode=text   Sidhartha, RBI resisted acting on Nov board deal, December 11, 2018: ''The Times of India'']
-PV Sindhu and HS Prannoy bowed out in the quarterfinals of the Indonesia Open BWF World Tour Super 1000 tournament in Jakarta. With the exit of these two shuttlers, the Indian challenge ended in the $1.25 million tournament. Sindhu lost to China’s He Bingjiao 21-14, 21-15 and Shi Yuqi defeated Prannoy 21-17, 21-18.
-Prannoy failed to win the big points towards the end of both games. At 18-18 in the second he committed unforced errors and surrendered the advantage to his Chinese rival. Sindhu failed to find her range even as Bingjiao controlled the game. The Indian kept pace with her rival till 10-10, thereafter it was Binjiao all the way. From 13-11, the Chinese girl raced ahead giving the Indian no chance to come back.
+In the hours that followed the marathon November 19 RBI board meeting, there was a conscious effort – especially by the external directors and government nominees – to paint a picture of cordiality. The impression sought to be conveyed was that the RBI had come around to the government’s way of thinking on several key issues.
-Not giving much lift to the bird, Binjiao restricted Sindhu from executing her trademark smashes or overhead drives. It was no different in the second game as Binjiao broke free from the 7th point to emerge victorious.
+But the ceasefire proved ephemeral. A committee which was to be constituted by the RBI and government to review RBI’s capital reserves has yet to see the light of day.
-== Japan Open BWF Tour Super 750==
+Similarly, when the RBI’s Board for Financial Supervision (BFS) met last week, it did not consider the government’s demand for a review of the PCA (prompt corrective action) framework.
-=== Manu-Sumeeth beat Olympics silver medallists===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F13&entity=Ar02714&sk=ED264DB3&mode=text  Manne Ratnakar, Stunning win for Manu-Sumeeth duo, September 13, 2018: ''The Times of India'']
-Manu Attri and Sumeeth Reddy stunned Rio Olympics silver medallists Goh V Shem and Tan Wee Kiong 15-21, 23-21, 21-19 to make it to the pre-quarterfinals of the Japan Open BWF Tour Super 750 tournament in Tokyo.
+'''RBI-govt communication breakdown again evident'''
-The Indians saved a match point to beat the Malaysian in 54 minutes. Staring down the barrel at 19-20 in the second game, Manu-Sumeeth won two crucial points to force the decider. In the keenly-contested third game, the Indians trailed 17-19 but did well to seal the issue.
+Many in the government believed that RBI, led by governor Urjit Patel, was “circumventing” board decisions despite the fact that they had been communicated through a formal statement after the November 19 meet. They had earlier pointed out that Patel and his deputies had abruptly wrapped the October 23 board meeting and refused to disclose even the decisions on which there had been an apparent consensus.
-It was this killer instinct that was missing from this pair. At the Asian Games in Jakarta, the duo could have won a medal. Leading 20-18 in the third game, they lost to Chinese pair of Li Junhui and Liu Yuchen in the pre-quarterfinals.
+That Patel was not at ease with the government’s push for a review of the ECF was evident from his statement to a parliamentary panel (reported by TOI on November 27) that the RBI’s current level of reserves were necessary as a buffer against international volatility and to maintain creditworthiness.
-“We are playing well now. We kept our nerves and supported each other. This victory will give us a lot of confidence for future,” Attri said. The world No. 28 Indians will face world No.18 Chinese pair of Qiang Tan and He Jiting in the second round. This would be the first meeting between the two teams.
+At the next board meeting of the central bank on December 14, the government was expected to ask for a relook at RBI governance structure, with greater oversight by the board. There was a view in the government that the RBI had in the past kept the board out of the picture and taken key decisions in committees packed with hand-picked members.
-The junior men’s doubles team of Satwiksairaj Rankireddy and Chirag Shetty and the women's outfit of Ashwini Ponnappa and Sikki Reddy lost their first round matches. While Satwik/Chirag lost to third-seeded Japanese Takeshi Kamura and Keigo Sonoda 12-21, 17-21, Ashwini-Sikki went down to South Korea’s Chang Ye Na and Jung Kyung Eun 17-21, 13-21.
+While breaking the story about the stand-off between the RBI and the government TOI had said there had been a “complete breakdown in communication” between the two.
-PV Sindhu, Kidambi Srikanth, HS Prannoy and the mixed doubles duo of Pranaav Jerry Chopra and Sikki Reddy will play their second round matches. Sindhu faces Chin’s Gao Fangjie.
+===The big issues: from IBC to Sec 7===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02000&sk=F4E39ABC&mode=text  Clash course: From IBC to Sec 7, December 11, 2018: ''The Times of India'']
-=== Sameer wins Swiss, Kashyap Austrian Open===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F26&entity=Ar02521&sk=B13E1DBD&mode=text  February 26, 2018: ''The Times of India'']
+''RBI’s Feb 12 Diktat That Patel Wouldn’t Dilute Put Govt, PSBs On Sticky Wicket''
-Sameer Verma won the first biggest title for India in 2018 by emerging triumphant in the Swiss Open Super 300 badminton tournament in Basel on Sunday.
+A key reform measure — the Insolvency and Bankruptcy Code (IBC) — was the trigger for the RBI’s February 12 circular, which turned out to be an inflection point in the relationship between the government and the central bank.
-Though they reached the finals, neither Saina Nehwal (Indonesia Masters) nor PV Sindhu (India Open) could clinch the titles this season. But Sameer faced no such final blues as he notched up a fluent victory against former Jan O Jorgensen of Denmark 21-15, 21-13.
+On February 12, the RBI did away with all restructuring scheme, which effectively gave borrowers more time to repay. The central bank’s rationale was that now there was a new law that enables banks to recover money and there was no need to kick the can further down the road. This put the government — the owner of public sector unit (PSU) banks — in a spot as PSU banks now needed more capital then envisaged. Loans had to be classified as defaults before being referred under the IBC and bad loans did soar as delayed repayments were not condoned. While the Centre did not attack the February 12 circular directly, it used the Nirav Modi scam, which broke soon after, to criticise the central bank.
-The Pullela Gopichand Academy trainee needed just 36 minutes to ease past the former world No.2. Jorgensen, who won the World Championships bronze in 2015, was out of sorts as Sameer looked in full low. Sameer started with a 3-0 lead in the first game and the closest Jorgensen came was at 10-12. Sameer then produced a five-point burst to took the issue beyond the Dane.
+Patel, in a speech at Gandhinagar in March 2018, hit out at the government stating that “success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking”. He then listed out seven legislative provisions that ensured that the RBI did not have much of a say in PSU banks. While the February 12 circular was a reform measure aimed at cleaning bad loans, its timing turned out to be disastrous. Banks were hit by a triple whammy — bond losses due to rising rates, over Rs 20,000-crore provision for Nirav Modi/Gitanjali accounts and additional provisions for non-performing assets (NPAs). Overall PSU bank losses crossed Rs 60,000 crore.
-Sameer was even more dominant in the second game as he took off from 11-9 to 17-9 in one serve.
+Many in the finance ministry were upset as the high NPAs triggered the imposition of prompt corrective action (PCA) on half the public sector banks and scuppered all plans of boosting growth through increased lending. Ministry officials compared the RBI action on PSU banks of forcing a patient to run a marathon when he was not fully out of the ICU.
-A few hours earlier about 720 kilomtres away from Basil, Sameer’s senior pro Parupalli Kashyap clinched the Austrian Open.
+What spoiled relations further was Patel’s refusal to engage with ministry officials or even other ministers. Nitin Gadkari, minister of road transport and highways, said in a forum addressing businessmen that his personal experience of dealing with the RBI was not good. Other ministers are known to have complained after filing to to get an audience with the governor.
-Ending a long title drought, Kashyap annexed the Austrian Open International Challenge title with a convincing victory against June Wei Cheam of Malaysia 23-21, 21-14. The 31-year-old, who was struggling to comeback after recurring injuries, was in complete control despite a tough first game.
+It was ultimately the differences over NPA classification that led the government to the path of Section 7 of the RBI Act, which empowers the government to give directions to the central bank. When the power producers challenged the RBI’s circular in the Allahabad high court, the government which was a party said that it did not have any objection. It was at this point that the court observed that the government could consider giving directions to the RBI on the issue. While the government did use the Section 7 threat, it was on a host of issues and not just non-performing assets.
-Having enduring tough time ever since he won the Commonwealth Games men's singles gold at Glasgow in 2014, Kashyap is pleased with the victory.
+=== Dec/ Gov. Urjit Patel resigns ===
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00311&sk=44E0E5AB&mode=text  Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: ''The Times of India'']
-“For any player it is important to win titles, I’ve to get into a habit of winning titles,” Kashyap told ToI from Vienna. The seasoned campaigner is always hailed as the shuttler who make rapid strides before the younger lot led by Kidambi Srikanth began dominating men's singles.
+[[File: In Dec 2018, Urjit Patel resigned, becoming independent India’s second governor to quit before the expiry of his term.jpg|In Dec 2018, Urjit Patel resigned, becoming independent India’s second governor to quit before the expiry of his term <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00311&sk=44E0E5AB&mode=text  Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: ''The Times of India'']|frame|500px]]
-Kashyap always believes that he has several good years of badminton left in him. Even last year he reached the finals of US Open.
-The shuttler now wants to focus on getting some ranking points which would help him improve his ranking. “With this win I will get some points which will help to improve my ranking. I am playing some tournaments in Europe next month. So I hope to continue this winning form there as well. I’ve to keep improving myself,” he said.
+'''What''': Reserve Bank of India (RBI) governor Urjit Patel resigned from the post on Monday citing ‘personal reasons’. His term was to end in September 2019. One of RBI’s deputy governors may take charge as the interim head till government finds a successor. The names doing the rounds for the next governor include Subir Gokarn (executive director IMF), SC Garg (economic affairs secretary) and Rajiv Kumar (secretary, financial services).
-==Sindhu, Prannoy bow out; Srikanth enters quarterfinals==
+'''History''': Patel is independent India’s second governor to quit before the expiry of his term over differences with the finance minister. Benegal Rama Rau, RBI’s second governor, had quit in 1957 after complaining about ‘rude’ finance minister TT Krishnamachari. RBI’s first governor, Osborne Smith, an Australian, had also quit in 1937 for not toeing the British government line.
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F14&entity=Ar02602&sk=3BA73818&mode=text  September 14, 2018:  ''The Times of India'']
+'''Why'''? Differences with the Centre over RBI’s decisions and its functions may have prompted the resignation. Government and RBI were not on the same page (and the differences were public) on issues like the use of RBI’s surplus reserves, handling of weak banks, funds for shadow banks, and interest rates. For the first time in history, the government had invoked its powers to instruct the central bank on certain issues. A sudden overactive RBI board (filled with government nominees), which used to be only an advisory body, could be another factor. “This should be seen as a statement of protest,” said former RBI governor Raghuram Rajan.
-Fatigue caught up with India’s premier shuttler PV Sindhu as she was upstaged in straight games but Kidambi Srikanth entered quarterfinals of the $700,000 Japan Open here Thursday. Sindhu was beaten by China’s Gao Fangjie in the women’s singles second round, her first preliminary exit in almost a year. The Indian went down fighting 18-2119-21in 55 minutes to the world no 14 Chinese. She had lost in the opening round at the Denmark Open in October 2017.
+'''So what'''? It’s not normal. Patel is the first governor since the 1990s to have quit before completing his term of three years. Raghuram Rajan says, “All Indians should be concerned about Governor Patel's resignation.” It’s not a good sign for RBI’s autonomy. An independent central bank is a check on the government, who may be keen to push for an easier way to prosperity for short-term gains. The move will also impact foreign investors’ perception of the Indian economy.
-Former world no.1 Srikanth, however, didn’t break a sweat as he avenged his Asian Games loss to Hong Kong’s Wong Wing Ki Vincent with a clinical 21-15, 21-14 victory to enter the men’s singles quarterfinals. The seventhseeded Indian, who won a silver at the Commonwealth Games, will face Korea’s Lee Dong Keun next.
+'''Why now'''? There are various theories doing the rounds. Theory 1: A board meeting was slated for December 14 in which he would have been forced to endorse decisions he didn’t favour. Theory 2: He offered to quit on November 9, the day he met PM, but was asked to stay till polls.
-However, it was curtains for the other Indian in the men’s draw, HS Prannoy, as he went down to giant-killer Anthony Sinisuka Ginting. The world no.10 Indonesian defeated formidable Japanese Kento Momota and Olympic champion Chen Long at the Asian Games.
+=Issues=
+==2016/ Questions Post-Demonetisation ==
+[http://indiatoday.intoday.in/story/demonetisation-rbi-banks-atm-modi-cash-crunch/1/834876.html Usha Thorat , The promise to pay the bearer “India Today” 15/12/2016]
-Sindhu, who has endured a hectic BWF season reaching five finals including three majors at CWG, World Championship and Asian Games, seemed mentally drained as errors crept into her game. The Indian put up a decent fight as she recovered from 2-8 down in the opening game but squandered a 17-14 lead.
+"The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country," said former deputy governor of the Reserve Bank of India,Usha Thorat.
-==Syed Modi International==
+There are many questions people are asking on the demonetisation move and the currency situation in the country. Some of the top-of-the-mind ones are quoted below, and these are my answers:
-===Sameer Verma won the men's singles crown===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIBG%2F2018%2F11%2F26&entity=Ar02312&sk=2C5D1B4D&mode=text  Saina falters in final, Verma wears crown, November 26, 2018: ''The Times of India'']
+How does the RBI decide how much currency to print? What say does the Centre have in such a decision?
-India's Sameer Verma won the men's singles crown at the Syed Modi International World Tour Super 300 badminton tournament, rallying well to defeat China's Lu Guangzu 16-21, 21-19, 21-14.
+The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country. The RBI makes an annual assessment of the demand for currency. Currently, currency constitutes about 12 per cent of GDP. Hence if the pace of digitisation is the same as the growth in GDP, currency demand should be at least equal to GDP growth (in nominal terms) unless we are pushing for a higher pace of digitisation. Also, seasonal factors affect currency demand-we witness higher demand during harvesting time, festival time and even election time. Finally, there is replacement demand, i.e., soiled notes have to be taken out, and good, clean notes put back in circulation. After making the estimate and deciding on the denomination-wise requirement, indents are placed with the note presses. This exercise is done in consultation with the Government of India.
-Sameer's win, which came in 70 minutes, was lone bright spot for India as the others who made the final rounds lost. Former
+Why couldn't the RBI have printed notes faster? If the Indian presses couldn't cope with the print load, why not do it abroad?
-champion Saina Nehwal failed to produce her best, losing in straight games to young Han Yue of China in a one-sided women's singles summit clash.
+The trade-off is between ensuring secrecy and having sufficient time to print and stock for remonetisation. The reports seem to suggest that 2 billion notes of Rs 2,000 were got ready prior to announcement. Against notes in circulation of over 15 billion pieces of Rs 500 and 6 billion of Rs 1,000, the annual supply from both the presses together was one-third in each of these two denominations in the past two years. Since the announcement, it is presumed the note printing presses have stepped up production of the Rs 500 and Rs 100 notes. Importing notes to remonetise could be thought of, but the capacity to print currency notes globally is limited and restricted to a few companies. Further, there would be considerable lead time involved. It may not serve the purpose.
-Commonwealth Games silver medallists Satwiksairaj Rankireddy and Chirag Shetty also went down in straight games against second seeds Fajar Alfian and Muhammad Rian Ardianto of Indonesia to settle for the runners-up prize in the men's doubles competition.
+What was the total cash in circulation prior to demonetisation? What was the amount held as cash reserve ratio (CRR) by banks and the RBI? And who holds it, and is it held in the form of cash?
-It was heartbreak for Saina, who lost to Han 18-21, 8-21 in a 34-minute final. Saina, who won a gold and a bronze medal at the Commonwealth Games and Asian Games, had ended second best at the Indonesia Masters in January and Denmark Open in October this year.
+Prior to demonetisation, currency or cash in circulation (as on November 4) was Rs 17.7 lakh crore; as on November 25, the figure dropped by Rs 6.1 lakh crore to Rs 11.6 lakh crore. Currency in circulation is a liability of the RBI. It is held either by the public or by banks that have some currency in their vaults; the latter forms a very tiny part of currency in circulation. Banks do not hold cash reserves in the form of currency-these are held as deposits with the RBI and are reflected as liabilities on the RBI balance sheet.
-In the men's doubles, Satwik and Chirag squandered a 18-14 lead in the second game to lose 11-21, 20-22 to world No. 7 Alfian and Ardianto in a 38-minute match.
+How does the RBI invest its reserves? What does it do with the profit it generates from this?
-Ashwini Ponnappa and Sikki Reddy too had to settle for the silver medal in women's doubles, losing in straight games (15-21, 13-21) to Malaysia's Chow Mei Kuan and lee Meng Yean.
+The RBI earns income from its investments in various assets. The major component of the RBI's assets-roughly 72 per cent-represents the foreign currency assets held in permitted investments abroad. Gold constitutes four per cent of the RBI's assets while Government of India securities account for 22 per cent. In 2015-16, the RBI income was Rs 80,870 crore, of which Rs 74,924 crore was interest income. Interest on foreign securities accounted for 32.5 per cent of interest income and that on government securities 57.5 per cent. Section 47 of the RBI Act states that after making provisions for bad/doubtful debts, depreciation in assets, contribution to the staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers, the balance of the bank's profits is to be paid to the Central government. Printing of currency notes, employee costs and agency charges (paid to banks to conduct government business) accounted for 84 per cent of RBI expenditure in 2015-16. The surplus profits transferred to the government for the year was Rs 65,876 crore and represented 99.99 per cent of gross income less expenditure.
-==Verma wins Dutch BWFTour Super 100 title==
+At the end of the demonetisation drive, what happens to the extinguished cash? Does it hand over this money to the GoI to spend as it wishes or retain it as profit after lessing the cost to print new notes?
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F15&entity=Ar02018&sk=6B20F541&mode=text  Sourabh wins Dutch Open title, October 15, 2018: ''The Times of India'']
+At the end of the demonetisation drive, the currency notes returned to the RBI will be shredded, presumably after checking for fakes. The RBI's supply of notes to the public may or may not be equal to what was in circulation before the November 8 measure. While restrictions cannot be placed indefinitely on cash, temporary limits can be justified citing the time taken to print the required amount of currency. Regarding the RBI's liability on demonetised notes that have not been exchanged/deposited in bank accounts, the central bank governor, in a recent press conference, stated that it continues in the bank's balance sheet as of now. This is because the last date for surrender at the RBI counter has not yet been notified (March 31 was mentioned as a date in the PM's speech). There is a view that the RBI's liability ceases only when the last date for exchange at the bank's counter is notified through a legislative process. At such a juncture, to the extent liabilities are extinguished, assets could be contracted through retirement of government debt held by RBI and/or creating a reserve at the bank to the same extent. It may not be prudent to transfer the amount to the government without assessing the macroeconomic implications, and the monetary conditions required, for achieving the inflation target set by the RBI.
-Sourabh Verma won the Dutch Open BWFTour Super 100 badminton tournament in Almere, Netherlands.
+Are the new currency notes harder to counterfeit?
-Verma defeated June Wei Cheam of Malaysia 21-19, 21-13 in the final. The unseeded Indian ousted top seed Mark Caljouw of the Netherlands in the semifinals on Saturday.
+One of the objectives of demonetisation is to guard against counterfeiting. Several security features are built into the notes to prevent counterfeiting. The government has announced that the new notes contain several new features that were not there earlier and would be difficult to forge. Other measures taken by the RBI to enable detection of forged notes are to improve awareness among the lay public on how to detect forged notes and to encourage shops and retail outlets to instal note-sorting machines. All banks are mandated to sort out the notes received by them over the counter through a note sorting machine that can detect forgery and ensure that they issue only genuine notes back into circulation.
-The 25-year-old shuttler, who trains at the Pullela Gopichand Badminton Academy, had won the Russia Open earlier this year. Dutch Open is Verma's third international title. In 2016 Verma won the Chinese Taipei Masters.
+Usha Thorat is a former deputy governor of the Reserve Bank of India
-==World Junior Badminton Championship==
+=Monetary Policy Committee, 2016=
-===India loses mixed event===
+[http://www.thehindu.com/business/Economy/centre-notifies-amended-rbi-act-to-usher-in-monetary-policy-committee/article8780360.ece ''The Hindu''], June 28, 2016
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F10&entity=Ar02105&sk=16D0D5EF&mode=text  November 10, 2018: ''The Times of India'']
+The Centre brought the Monetary Policy Committee (MPC) one step closer to reality by notifying the changes made to the Reserve Bank of India (RBI) Act in June 2016.
-'''Jr World Cup: India bow out in mixed event'''
+The six-member Committee — tasked with bringing “value and transparency to monetary policy decisions” — will comprise three members from RBI, including the Governor, who will be the ex-officio chairperson, a Deputy Governor and one officer of the central bank.
-Markham (Canada): India went down fighting 1-3 to South Korea in the mixed team quarterfinals of the world junior badminton championships, despite Lakshya Sen's superb efforts here. Asian Junior champion, Lakshya lived up to expectations but the two losses in the doubles category virtually sealed India's fate and it was all over after the women singles defeat.
+'''Composition'''
-==World Tour Finals, Gaungzhou==
+The other three members will be appointed by the Centre on the recommendations of a search-cum-selection committee to be headed by the Cabinet Secretary.
-===Sindhu beats champion Yamaguchi, Verma falters===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F13&entity=Ar03020&sk=9CCCB7C9&mode=text  Manne Ratnakar, Sindhu off to flying start in World Tour Finals, December 13, 2018: ''The Times of India'']
+“These three members of MPC will be experts in the field of economics or banking or finance or monetary policy and will be appointed for a period of four years and shall not be eligible for re-appointment,” according to the statement.
-PV Sindhu was off to a good start but Sameer Verma faltered on the first day of the BWF World Tour Finals in Gaungzhou. In a hard-fought encounter, Sindhu defeated defending champion Akane Yamaguchi of Japan 24-22, 21-15 while Sameer went down to world No.1 Kento Momota of Japan 18-21, 6-21.
+The Committee is to meet four times a year and make public its decisions following each meeting.
-Sindhu fought back from big deficits in the first game to prevail over Yamaguchi. The Japanese shuttler was cruising ahead with a 11-6 and 18-12 advantage. But once Sindhu got her range she showed a lot of discipline, made some brilliant retrieves and caught up with Yamaguchi at 19-19.
+[[Category:India |R ]]
+[[Category:Economy-Industry-Resources |R ]]
-Sindhu saved two game points (20-21, 21-22) before winning the game after Yamaguchi hit the bird into the net at 23-22.
-In the second game, Yamaguchi was too defensive, allowing Sindhu to take control of the game. From 10-11, Sindhu secured eight consecutive points to move into a commanding lead of 18-11.
+[[Category:India |R ]]
+[[Category:Economy-Industry-Resources |R ]]
-===Sindhu finally beats No. 1, Tai Tzu===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F14&entity=Ar03004&sk=FA7E15FC&mode=text  Manne Ratnakar, Sindhu shocks No. 1 Tai Tzu, December 14, 2018: ''The Times of India'']
+[[Category:India |R ]]
+[[Category:Economy-Industry-Resources |R ]]
-PV Sindhu continued her red-hot form at the BWF World Tour Finals as she stunned world No.1 Tai Tzu Ying 14-21, 21-16, 21-18 to win her second Group ‘A’ league match in Guangzhou on Thursday. With this victory, the first against Tai after six losses, Sindhu improved her chances of qualifying for the semifinals.
+=Policy reviews=
+: ''' RBI shifts to bi-monthly policy review '''
-Meanwhile, Sameer Verma kept his chances alive with a 21-16, 21-7 victory against Tommy Sugiarto of Indonesia. Sameer lost his first Group ‘B’ match on Wednesday and a loss on Thursday would have ended his campaign. Sameer should beat Kantaphon Wangcharoen of Thailand on Friday to qualify for the last four.
+TIMES NEWS NETWORK
-Sameer said he was tense playing his first BWF Finals. “I was very tense before the match because I lost yesterday.Court conditions are very slow, but we should learn fast how to manage these conditions. Tomorrow’s match against Kantaphon is very important, I need to stay focused,” Sameer said.
+[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2014/03/12&PageLabel=25&EntityId=Ar02509&ViewMode=HTML ''The Times of India'']
-Kento Momota defeated Kantaphon in the other Group ‘B’ match.
+Mumbai: The Reserve Bank of India will shift to a system of announcing its policy statement bi-monthly with the first such policy being announced on April 1, 2014. Bankers widely expect RBI to hold on to rates given that pressure on inflation is easing and the rupee has also been firming up.
-Sindhu fought back brilliantly after losing the first game to Tai. She made too many mistakes in the first game but recovered quickly in the second game. In the third, Sindhu was trailing 6-11 before the mandatory change of courts. But Sindhu, who last defeated Tai at the Rio Olympics in 2016, did not lose hope. She cut down the deficit to 11-13 and came up with seven points to take a five-point lead.
+Until the mid-90s, RBI had only two monetary policy reviews a year. After Bimal Jalan took charge as governor in 1997, he introduced quarterly reviews. His successor Y V Reddy introduced a mid-quarter review, which resulted in an announcement every 45 days.
-Thereafter, Tai tried hard but Sindhu was ready. An elated Sindhu said: “It’s a big win for me after a long time. I gave my 100% in the second. When I was trailing 6-11 in the decider, I kept telling myself that it is not over till the end. She took one point but I won two to three points from each serve,” Sindu said.
+A panel headed by RBI deputy governor Urjit Patel had recommended that the central bank monetary policy committee meet every two months to review rates.
-=== Sindhu reaches SFs; Verma knockout stage===
+=Reserves=
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F15&entity=Ar02904&sk=396FB8E6&mode=text  Feisty Sindhu reaches semis, December 15, 2018: ''The Times of India'']
+==What is the appropriate level of reserves?==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F16&entity=Ar02414&sk=A414CAD4&mode=text  November 16, 2018: ''The Times of India'']
-Olympic silver medallist P V Sindhu continued her unbeaten run, while debutant Sameer Verma also qualified for the knockout stage with a straight-game win in his last Group B match at the BWF World Tour Finals. Playing her third successive year-ending finale, Sindhu dished out some deceptive strokes and showed precision during the 35-minute contest to prevail over
+'''HOW MUCH RESERVES ARE ENOUGH FOR RBI?'''
-world no. 12 Beiwen Zhang 21-9 21-15 in a one-sided women's singles contest to top Group A.
+RBI has accused the govt of trying to raid its coffers to bolster its revenues, which is one of the flashpoints in high-profile turf battle. The finance ministry has rejected the claim and suggested that there is a need to discuss how much capital RBI needs to deal with contingencies
-“I was down 2-6 initially but I picked up the lead, so after that I was fine,” Sindhu said after the match.
-“I have played a few matches against her after the Indian Open final, so I took it as a fresh match,” added the 23-year-old.
+'''Clarification'''
-On the adjacent court, 24-year-old Sameer showed great athleticism and produced a masterful performance to demolish Thailand's Kantaphon Wangcharoen 21-9 21-18 in a match that clocked 44 minutes.
+The Centre clarified that it wasn’t going to raid Reserve Bank of India’s reserves for Rs 3.6 lakh crore of ‘free money’ but it also said that it was in discussion to fix ‘appropriate economic capital framework’ of the central bank
-===Sindhu defeats Okuhara, wins first BWF World Tour title===
-[https://timesofindia.indiatimes.com/sports/badminton/pv-sindhu-defeats-nozomi-okuhara-to-clinch-maiden-bwf-world-tour-finals-title/articleshow/67113039.cms  PV Sindhu defeats Nozomi Okuhara to clinch maiden BWF World Tour Finals title, December 16, 2018: ''The Times of India'']
+'''Conditions apply'''
-A relieved P V Sindhu let out a joyous scream when she finally laid her hands on a gold medal by claiming the World Tour Finals with a win over 2017 world champion Nozomi Okuhara.
+The framework the government is talking about is basically about how much capital RBI needs for its operations and how much of the surplus it should pass on to the government. This essentially means that Centre may not have asked for a specific amount (Rs 3.6 lakh crore) but it wants to ‘fix’ the process and that may end up giving it even more than that
-Wish PV Sindhu on her maiden World Tour Finals title victory
-With the straight-game victory, coming after seven straight finals losses, Sindhu became the first Indian to achieve the feat.
+'''Why fix?'''
-Playing her third successive season-ending finale, Sindhu, who had lost in the summit clash to another Japanese, Akane Yamaguchi, to settle for a silver in the last edition, prevailed 21-19 21-17 in a match that lasted an hour and two minutes.
+The government believes that RBI is sitting on much higher reserves than it actually needs to tide over financial emergencies that India may face. Some central banks around the world (like US and UK) keep 13% to 14% of their assets as a reserve, compared to RBI’s 27% and some (like Russia) more than that. Each central bank assesses its risk and reserve requirements according to its past experience and future likelihood of the scale and kind of crisis
-This was her career's 14th title but the year's first. Prior to this in 2018, she has won silver at the World Championships, Asian Games, Commonwealth Games, Thailand Open and India Open.
-Dubbed a bridesmaid after falling short of gold on a number of occasions, Sindhu finally broke her jinx, screamed and sunk to her knees.
+'''Old problem'''
-Saina Nehwal had reached the finals of 2011 World Super Series Finals, while Jwala Gutta and V Diju finished runners up at the 2009 edition.
+Economists in the past have argued for RBI releasing ‘extra’ capital that can be put to productive use by the government. Former chief economic adviser Arvind Subramanian had argued for it (he had mentioned Rs 4 lakh crore). The Malegam Committee estimated the excess (in 2013) at Rs 1.49 lakh crore
-Sindhu, an Olympic and World Championship silver medallist, was composed and held her nerves at the crucial moments to stay a step ahead of the Japanese through the match.
-In the first game, Okuhara made a couple of errors and Sindhu took early lead.
+'''How much?'''
-She used some drop shots and looked good at the net to lead 7-3 but Okuhara narrowed down the deficit to 5-7. Sindhu dominated the next long rally and nosed ahead 11-6 at the mid-game break.
+RBI’s held total assets worth Rs 36.17 lakh crore on June 30 on its balance sheet. At 27% of this, the central bank would have around Rs 9.7 lakh crore as reserves. If it were to bring it down to 14% as the government probably wants, it would be left with about Rs 5 lakh crore. That means an excess capital of Rs 4.7 lakh crore to be handed over to the government
-After the breather, Sindhu extended her lead to 14-6 before Okuhara reeled off four successive points to narrow the deficit.
-Okuhara seemed to control the proceedings next as she erased the deficit to claw back at 16-16. In fact, the Japanese grabbed 10 of the 12 points after being down 6-14 down, to draw parity.
+'''Why now?'''
-But Okuhara also smashed wide twice to hand Sindhu a 19-17 advantage. The Indian grabbed three game point advantage but Okuhara managed to save two before Sindhu sealed the opening game with a superb drop shot.
+With a general election looming early next year, analysts believe the cash-strapped government is trying to stimulate the economy with a big public spending spree to woo voters, says a report
-Sindhu engaged in long rallies with Okuhara and managed to stay 6-4 ahead at one stage of the second game. The Japanese stretched and controlled the rallies and waited for the Indian to hit out. It worked as she forced her way back at 7-7.
-Sindhu, however, managed to always stay ahead and led 11-9 at the interval after Okuhara lost a video referral.
+'''What next?'''
-Okuhara tried to push the shuttle back of the court from the baseline and unleashed a body smash to make it 12-13. She kept snapping at her rival's heels to make it 16-17.
+The RBI governor, Urjit Patel, some say, has two options: to agree to his employer (the government) or leave the job. RBI deputy governor, in his (now controversial) speech, had referred to the resignation of Argentina’s central bank head for a similar reason of refusing government’s order to transfer the central bank’s reserve to pay foreign debt
-A return to the net gave Sindhu a 18-16 lead. A long rally ensued and it ended with Okuhara leaving it shot and Sindhu unleashing a smash to move to 19-16.
+==As in 2018, Mar==
+[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02103&sk=6959637B&mode=text  Mayur Shetty, RBI saves its current reserves, but govt expects more next year,  November 20, 2018: ''The Times of India'']
-A lucky net chord took the Indian one step away from the title. Sindhu grabbed three match points and converted them immediately to seal the issue in her favour.
+[[File: RBI's reserves as on March 31, 2018.jpg|RBI's reserves as on March 31, 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02103&sk=6959637B&mode=text  Mayur Shetty, RBI saves its current reserves, but govt expects more next year, November 20, 2018: ''The Times of India'']|frame|500px]]
-==World Juniors: Bronze for Lakshya==
-Markham (Canada): Lakshya Sen settled for a bronze medal in the World Junior Badminton Championship after suffering a narrow defeat to top seed Kunlavut Vitidsarn of Thailand in the singles semifinals here. The 17-yearold from Almora lost 22-20, 16-21, 13-21 to Vitidsarn in a match that went on for an hour and 11 minutes on Saturday.
-=2019=
+The Reserve Bank of India (RBI) has managed to protect its Rs 9.7-lakh-crore reserve kitty with its board agreeing to have a panel determine how much capital it needs to maintain and how much can be distributed from future surplus to the government. The Centre has also not lost as prospects of a higher share of future surplus allows it to budget for a larger chunk of revenues from the central bank in its ‘Vote on Account’ for next year.
-==All England==
-===Day 1===
-[https://timesofindia.indiatimes.com/sports/badminton/all-england-open-pv-sindhu-suffers-shock-defeat-sai-praneeth-in-round-of-16/articleshow/68289421.cms  Suhas Nayse, Sindhu ousted in first round, March 7, 2019: ''The Times of India'']
+“The RBI board decided to constitute an expert committee to examine the Economic Capital Framework (ECF), the membership and terms of reference of which will be jointly determined by the government and the RBI,” the central bank said in a statement.
-''Sai Praneeth Gets Past Compatriot Prannoy To Enter Second Round''
+The ECF refers to a formula for deciding the capital adequacy ratio for RBI. This is a positive development for those fearing that the government will tap into existing reserves of the central bank.
-The inaugural day of the All England Badminton championship turned out to be a disappointing one for the Indians as their star shuttler PV Sindhu crashed out in the first round in Birmingham. Barring B Sai Praneeth, rest of the Indians in action failed to cross the first-round hurdle.
+Of the existing reserves, a bulk of the funds are in contingency funds and in revaluation reserves. The contingency reserves, by definition, cannot be touched except in a crisis. To tap revaluation reserves, the RBI will have to sell assets and shrink its balance sheet. This will upset the money supply in the economy. Even if the to-be-constituted committee recommends higher transfers to government, it will result in lesser accretion to reserves and will not deplete the RBI’s balance sheet.
-It was a painful exit for Sindhu. The fifth seed was surprised by unseeded Sung Ji Hyun 16-21, 22-20, 18-21. In a marathon battle which lasted for an hour and 20 minutes, the S. Korean shattered Sindhu’s hopes with a hard-fought victory. Sindhu was well in control initially and was leading on a few occasions in the first game. The Korean suddenly changed gears and reeled off four consecutive points to claim the opener at 21-16.
+It was earlier speculated that the Centre might press for the RBI transferring a third of its Rs 9.7-lakh-crore total reserves to the government. The speculation was based on some reports stating that RBI holds over Rs 3 lakh crore of surplus reserves.
-It was Sung’s second successive and overall seventh victory against Sindhu in their 15th clash so far. Sung will lock horns with Hong Kong’s Cheung Ngan Yi in the second round.
+A higher surplus transfer for 2018-19 is likely because the central bank’s earnings are expected to be much more robust than 2017-18. In the current fiscal, the RBI has been intervening heavily in the foreign exchange and bond markets. The central bank’s earnings soar whenever there is forex volatility as it ends up making profits while selling dollars. For 2017-18, the RBI transferred a dividend of Rs 50,000 crore to the government.
-In an all-Indian men’s singles clash, 2017 Singapore Open champion B Sai Praneeth pipped fellow Gopichand Academy trainee HS Prannoy 21-19, 21-19. With this 52-minute win, Sai Praneeth levelled the head-to-head record at 2-2.
+Former governor Raghuram Rajan had proposed a formula-based model for fund transfer to the government. He had also warned against liquidating assets to transfer funds to government, stating that to neutralise the impact, the RBI would have to conduct money market operations by selling bonds. If the government had to issue fresh bonds in order to receive money from the central bank, it would be in the same position as before.
-Ashwini Ponnappa and N Sikki Reddy gave a big scare to seventh seeds Shiho Tanaka and Koharu Yonemoto of Japan before losing 21-16, 26-28, 16-21.
-The unseeded Indian duo had a match point in the second game but could not capitalize on it and succumbed to pressure. Another Indian women’s doubles pair of Meghana Jakkampudi and Poorvisha S Ram fought hard before going down 21-18, 12-21, 12-21 to the Russian duo of Ekaterina Bolotova and Alina Daveltova.
+==2018: the position in other countries==
+[[File: Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017.jpg|Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02901&sk=34D2A259&mode=text  Sidhartha, November 21, 2018: ''The Times of India'']|frame|500px]]
-'''Results (Indians):''' Round 1: Women’s singles: PV Sindhu lost to Sung Ji Hyun (Korea) 16-21, 22-20, 18-21. Men’s singles: B Sai Praneeth bt HS Prannoy 21-19, 21-19. Women’s doubles: Ashwini Ponnappa-N Sikki Reddy lost to 7-Shiho Tanaka-Koharu Yonemoto (Japan) 21-16, 26-28, 16-21; J Meghana-Poorvisha S Ram lost to Ekaterina Bolotova-Alina Davletova (Russia) 21-18, 12-21, 12-21
-==Day 2==
+'''See graphic''':
-[https://timesofindia.indiatimes.com/sports/badminton/saina-nehwal-kidambi-srikanth-enter-quarterfinals-of-all-england-championships/articleshow/68308004.cms  Suhas Nayse, Saina, Srikanth enter quarters, March 8, 2019: ''The Times of India'']
+''Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017''
-The success of Saina Nehwal revolves around her mental toughness. The gutsy Indian once again displayed her strong character as she stormed into the women’s singles quarterfinal in the All England Badminton Championship at Birmingham.
-Joining her in the lasteight stage was Kidambi Srikanth, who also registered a three-game victory against Indonesia’s Jonatan Christie 21-17, 11-21, 21-12 in 58 minutes.
-Earlier, Saina thumped Kirsty Gilmour of Scotland 21-17, 21-18 in 35 minutes to launch her campaign on a rousing note.
-Seventh seed Srikanth ended the two-match losing streak against Christie, world No.9. Srikanth was almost flawless in the first and third games, dishing out series of down-the-line smashes and brilliant net play. In the quarterfinal, Srikanth will also run into top seed and world No. 1 Kento Momota. The Japanese has a 10-3 record against the Indian.
-Earlier, B Sai Praneeth bowed out in the second round. After defeating compatriot HS Prannoy in the first round, Praneeth could not continue his good run and lost 12-21, 17-21 against Ng Ka Long Angus of Hong Kong in 35 minutes.
-==Indonesia Masters==
-===Saina, Sindhu, Srikanth sail into quarterfinals===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F25&entity=Ar03219&sk=F5550D1F&mode=text  January 25, 2019: ''The Times of India'']
-The third day of the Indonesia Masters turned out to be almost perfect one for the Indians with Saina Nehwal, PV Sindhu and Kidambi Srikanth sailing into the quarterfinals at Jakarta.
-The top Indian trio of Saina, Sindhu and Srikanth recorded straightgame victories over their respective rivals in the second round encounters to book last-eight berth.
-Second seed Sindhu overcame a rusty start to down Gregoria Mariska Tunjung of Indonesia 23-21, 21-7 in 37 minutes. It was fifth successive win for the 23-year-old Indian over the Indonesian, ranked 14 in the world. The Rio Olympics silver medallist will now square off against her arch rival Carolina Marin of Spain. The fifth seed Spanish player has a 7-5 head-to-head record against the Indian. The reigning Olympic champion will go into the match with a pychological advantage having beaten the tall Hyderabadi in their last clash.
-Like Sindhu, Saina also maitained clean slate against her second round opponent Fitriani Fitriani. Saina has never lost a game against the Indonesian in their previous four encounters and Thursday was no different. On way to registering fifth consecutive win against Fitriani, world No. 31, Saina was on song and never allowed her rival to dictate the terms en route 21-17, 21-15 win in 43 minutes.
-The 28-year-old Saina will now lock horns with Pornpawee Chochuwong of Thailand in the quarters. Eighth seed Saina has never lost to Thai girl in their last three ties so far and is expected to maintain her perfect recond. The only worry for Saina is that she has not face Chochuwong, world No. 22, in the last one and half years.
-The lone warrior in the men’s singles, Srikanth made the light work of Kenta Nishimoto of Japan with a clinical 21-14, 21-9 win in exactly half an hour.
-Srikanth, world No. 8, improved his record to 4-1 after Thursday’s result. He also avenged his loss against the Japanese, ranked 10th in the world, in the Hong Kong Open a couple of months ago in their previous encounter. Srikanth will face local giant Jonatan Christie for a spot in the semifinal.
-===Saina enters final===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F27&entity=Ar01813&sk=D9225B37&mode=text  Saina enters Indonesia Masters final, January 27, 2019: ''The Times of India'']
-Indian ace Saina Nehwal grinded her way to first final of the season with a combative win over China’s He Bingjiao at the USD 350,000 Indonesia Masters badminton tournament. The 28-year-old Indian, who was a runner-up last year, notched up a 18-21 21-12 21-18 win over sixth seed Bingjiao, a world championship bronze medallist.
-Eighth seed Saina will now face either Spain’s three-time World Champion and reigning Olympic champion Carolina Marin or China’s Chen Yufei, seeded third, in the women’s singles summit clash of the World Tour Super 500 event.
-In their first ever meeting in international circuit, Saina showed better court coverage and unleashed some telling smashes to trouble the 21-year-old left-hander. Saina lagged 0-2 initially but clawed back to 5-5 with a couple of smashes. Another powerful straight smash left the Chinese stranded as the Indian led 8-6. She then went into the break with a 11-7 advantage.
-The Hyderabadi continued the good run after the breather to lead 16-11 but netted twice to allow Bingjiao narrow down the equation to 15-16. A brilliant cross court smash and a superb drop helped the Chinese keep the deficit to a point till 17-18.
-Bingjiao then won a video referral on a line call to make it 18-18. She then unleashed a smash to grab a crucial 19-18 advantage, before holding two game points. The Chinese sealed it when Saina went wide.
-In the second game, Saina pulled away doubling the lead at 6-3 after an initial duel and then entered the break with a huge 11-3 margin. A beautifullooking cross court net return helped the Indian swell the lead to 17-9. She then produced two roaring cross court smashes to inch closer to the game point, which she grabbed once the Chinese went wide.
-In the final game, Saina continued to go strong, taking a 6-3 lead early on and then extended it to 9-5. The Chinese, however, drew parity at 10-10. After the breather, Saina caught up with the Chinese at 13-13 after prevailing in a rally. She earned the lead at 17-16 with yet another smash to let out a scream. The Indian grabbed two match points and sealed it with yet another precise return.
-===Title for Saina, hurt Marin pulls out===
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F28&entity=Ar02616&sk=0492001C&mode=text  Suhas Nayse, January 28, 2019: ''The Times of India'']
-''Indonesia Masters Nehwal’s First Big Crown In Two Years''
-Saina Nehwal might be the oldest player in the world top-25 right now but she is far from not finished. Just a couple of months shy of turning 29, the ace Indian shuttler notched up her maiden Indonesia Masters crown at Jakarta.
-Although she would not have liked the way she won the title as her opponent and nemesis Carolina Marin retired hurt in the summit clash, it will nonetheless boost her morale ahead of the All England Championship. The Spanish player got off to a flying start and was leading comfortably 10-4 when the match was only ten minutes old. However, the fifth seed while going for an overhead shot, perhaps stretched too much and injured her right foot after a hard landing. As she cried in pain, it was clear she could not continue playing. The three-time world champion had no choice but to pull out of the match.
-In the Malaysia Masters semifinal a week before, Marin had beaten Saina in the semifinal. Marin led 6-5 in her head-tohead record against Saina before Sunday’s clash. It was Saina’s first major BWF title in two years. The eighth seed had won her last tile in Malaysia in 2017. Last year, Saina had lost to Tai Tzu Ying of Chinese Taipei in this event’s final. It was Saina’s maiden title in Indonesia in eight appearances.
-Saina was happy with the much-needed title but felt sorry for her arch-rival Marin. “Not the way I wanted it in the finals of Indonesia Masters. Injuries are worst for players and it was very unfortunate to see Carolina, the best player in women’s badminton, to face it today in the match. I wish her a very speedy recovery,” said Saina, who had rallied to down sixth seed HeBingjiaoof China 18-21,21-12,21-18 in 58 minutes in the semifinal.
-In the men’s singles final, Denmark’s Anders Antonsen edged past hot favourite and top seed Kento Momota of Japan 21-16, 14-21, 21-16 to emerge champion.
-==Malaysia Masters==
-===Saina loses to Marin in semi-finals===
-[https://timesofindia.indiatimes.com/sports/badminton/saina-nehwal-loses-to-carolina-marin-at-malaysia-masters/articleshow/67599186.cms  Saina loses to Marin, January 19, 2019: ''The Times of India'']
-''India’s Campaign Ends In Malaysia''
-Saina Nehwal’s impressive run at the Malaysia Masters came to an end following her straight-game loss to reigning Olympic and world champion Carolina Marin of Spain in the women’s singles semifinals. The 28-year-old Indian, who had won the title in 2017 and was a runners-up in the 2011 edition, went down16-2113-21to fourth seed Marin in a 40-minute match to bring an end to India’s campaign at the first World Tour Super 500 tournament of the season.
-==Nationals: Varma beats Sen; Saina  beats Sindhu==
-[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F17&entity=Ar02607&sk=3FE89170&mode=text  Suhas Nayse, SAINA TAMES SINDHU AGAIN, RETAINS CROWN, February 17, 2019: ''The Times of India'']
-''Sourabh Varma Stops Lakshya Sen In Men’s Singles Final At Badminton Nationals''
-The big battle between India’s badminton queens was once again won by Saina Nehwal. Making light of the top seed and arch-rival PV Sindhu, Saina won 21-18, 21-15 to retain her crown. With this dominating victory, Saina also maintained her perfect record in the Senior Nationals with four titles in as many appearances.
-Out of the five finals scheduled on the concluding day of the Senior National Badminton Championship here on Saturday, the Saina-Sindhu clash was the cynosure of all eyes here on Saturday. Sindhu was off the blocks in style, winning the first three points. But Saina did not take long to find her groove. The defending champion first leveled the scores and then took a slender lead (11-10) at the break.
-Saina, who will turn 29 next month, maintained a steady lead and didn’t allow Sindhu to nose ahead thereafter. Playing aggressively, Saina used powerful smashes to good effect. Sindhu’s returns were mostly in mid-court areas which were finished in a flash by Saina, who converted her second game point to grab the opener at 21-18.
-Like in the first game, Sindhu pocketed the first couple of points in the second, hinting at a fightback. Sindhu was ahead a few times (5-3 and 7-6) but after she lost steam. Saina increased the intensity by firing bullet smashes to every corner of the court. Her aggressive brand of play caught Sindhu completely unawares and she came under tremendous pressure. Saina continued her tempo and sealed the fate of Sindhu on the second match point (21-15) in 44 minutes. It was Saina’s back-to-back win in the Nationals after she won in Nagpur last year.
-Results (Finals): Men’s singles: Sourabh Varma bt Lakshya Sen 21-18, 21-13; Women’s singles: 2-Saina Nehwal bt 1-PV Sindhu 21-18, 21-15; Men’s doubles: 2-Pranaav Jerry Chopra-Chirag Shetty bt 1-MR Arjun-Shlok Ramchandran 21-13, 22-20; Women’s doubles: Shikha Gautam-K Ashwini Bhat bt 1-Meghana Jakkampudi-Poorvisha S Ram 21-16, 22-20; Mixed doubles: Manu Attri-K Maneesha bt 1-Rohan Kapoor-Kuhoo Garg 18-21, 21-17, 21-16.
-'''Railways demand team championship winners AAI’s disqualification'''
-Guwahati: The Inter-State team championship runnersup, Railways, have alleged that Airport Authority of India (AAI) won the title by fielding ineligible players and hence should be disqualified. The AAI team edged out Railways 3-2 to clinch their maiden title.
 =See also=
-Pages on individual stars like
+[[Banking and the law: India]]
-[[Kidambi Srikanth]],
-[[Pullela Gopichand]],
-[[PV Sindhu]],
+[[Raghuram Rajan]]
-[[Saina Nehwal]].
+[[Category:Economy-Industry-Resources|R
+THE RESERVE BANK OF INDIA]]
+[[Category:Government|RTHE RESERVE BANK OF INDIATHE RESERVE BANK OF INDIA
+THE RESERVE BANK OF INDIA]]
+[[Category:India|R
+THE RESERVE BANK OF INDIA]]
+[[Category:Name|ALPHABETTHE RESERVE BANK OF INDIATHE RESERVE BANK OF INDIA
+THE RESERVE BANK OF INDIA]]
+[[Category:Pages with broken file links|THE RESERVE BANK OF INDIA
+THE RESERVE BANK OF INDIA]]

Badminton: India, The Reserve Bank of India

Revision as of 22:43, 14 December 2020

Contents

History

Reserve Bank of India Act of 1934

What is Section 7 of the Reserve Bank of India Act of 1934

Sec 7 application considered in 2018, Oct

Central board of directors

The Central Board

The Board, as in 2018

Local Boards

Why RBI is not comfortable with active boards

How other central banks function

The post of Governor

Selection of Governor, Dy. Governor

Salary and perquisites of RBI governors

2016: Urjit Patel’s package

2017, pay hike: Rs 2.5 lakh/month

Governors of the Reserve Bank of India

1935- 2013: complete list

Duvvuri Subbarao: 2008-2013

Raghuram Rajan

Urjit Patel

2016-18

Balance sheet

Where do RBI’s surplus funds come from?

2013-18: surplus transferred

Surplus capital, 2013-18

Dividends

2017: Demonetisation, printing of currency: RBI halves dividend

2016> 2018

2020; 2012-2020

Gold reserves

Purchases in 2009, 2018

2014-19

Government- RBI relations

Why govts want central banks on their side

1935-2016: Govt. vs. the RBI

When mediating PM, diplomatic governors averted crisis

1956-57: Pt. Nehru vs. Sir Rau

2014, PM Manmohan Singh: Governor must heed govt

10 flash points between Govt., RBI: 2017-18

Points of friction

2017, 2018: tensions under Patel

2018, Nov: The appearance of a truce

The big issues: from IBC to Sec 7

Dec/ Gov. Urjit Patel resigns

Issues

2016/ Questions Post-Demonetisation

Monetary Policy Committee, 2016

Policy reviews

Reserves

What is the appropriate level of reserves?

As in 2018, Mar

2018: the position in other countries

See also

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