<p class="title">Ahead of RBI Board meeting, Congress leader P Chidambaram Sunday alleged that the central government was determined to "capture" the bank to gain control over its Rs 9 lakh crore reserves.</p>.<p class="bodytext">In a series of tweets, the former finance minister also claimed that the government and the Reserve Bank of India (RBI) was heading towards a "confrontation" in the Monday's board meeting of the bank.</p>.<p class="bodytext">"Government is determined to 'capture' RBI in order to gain control over the reserves. The other so-called disagreements are only a smokescreen (sic)," he said on microblogging site Twitter.</p>.<p>;</p>.<p class="bodytext">Chidambaram said, "Nowhere in the world is the central bank a board-managed company. To suggest that private business persons will direct the governor is a preposterous idea."</p>.<p class="bodytext">"November 19 will be a day of reckoning for central bank independence and the Indian economy," he tweeted.</p>.<p class="bodytext">The RBI has a massive Rs 9.59 lakh crore reserves and the government, if reports are to be believed, wants the central bank to part with a third of that fund -- an issue which along with easing of norms for weak banks and raising liquidity has brought the two at loggerheads in the recent weeks.</p>.<p class="bodytext">The government on November 9 had said it was discussing an "appropriate" size of capital reserves that the central bank must maintain but denied seeking a massive capital transfer from the RBI.</p>.<p class="bodytext">Economic Affairs Secretary <a href="https://www.deccanherald.com/national/govt-not-seeking-rs-36-lakh-cr-702204.html" target="_blank">Subhash Chandra Garg</a> had also clarified that the government wasn't in any dire needs of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore.</p>.<p class="bodytext">"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he had said.</p>.<p class="bodytext">"The government's FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, the government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. The government has actually foregone (Rs) 70,000 crore of budgeted market borrowing this year." </p>.<p class="bodytext">Garg said the only proposal "under discussion is to fix appropriate economic capital framework of RBI".</p>.<p class="bodytext">Economic capital framework refers to the risk capital required by the central bank while taking into account different risks.</p>
<p class="title">Ahead of RBI Board meeting, Congress leader P Chidambaram Sunday alleged that the central government was determined to "capture" the bank to gain control over its Rs 9 lakh crore reserves.</p>.<p class="bodytext">In a series of tweets, the former finance minister also claimed that the government and the Reserve Bank of India (RBI) was heading towards a "confrontation" in the Monday's board meeting of the bank.</p>.<p class="bodytext">"Government is determined to 'capture' RBI in order to gain control over the reserves. The other so-called disagreements are only a smokescreen (sic)," he said on microblogging site Twitter.</p>.<p>;</p>.<p class="bodytext">Chidambaram said, "Nowhere in the world is the central bank a board-managed company. To suggest that private business persons will direct the governor is a preposterous idea."</p>.<p class="bodytext">"November 19 will be a day of reckoning for central bank independence and the Indian economy," he tweeted.</p>.<p class="bodytext">The RBI has a massive Rs 9.59 lakh crore reserves and the government, if reports are to be believed, wants the central bank to part with a third of that fund -- an issue which along with easing of norms for weak banks and raising liquidity has brought the two at loggerheads in the recent weeks.</p>.<p class="bodytext">The government on November 9 had said it was discussing an "appropriate" size of capital reserves that the central bank must maintain but denied seeking a massive capital transfer from the RBI.</p>.<p class="bodytext">Economic Affairs Secretary <a href="https://www.deccanherald.com/national/govt-not-seeking-rs-36-lakh-cr-702204.html" target="_blank">Subhash Chandra Garg</a> had also clarified that the government wasn't in any dire needs of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore.</p>.<p class="bodytext">"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he had said.</p>.<p class="bodytext">"The government's FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, the government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. The government has actually foregone (Rs) 70,000 crore of budgeted market borrowing this year." </p>.<p class="bodytext">Garg said the only proposal "under discussion is to fix appropriate economic capital framework of RBI".</p>.<p class="bodytext">Economic capital framework refers to the risk capital required by the central bank while taking into account different risks.</p>