'Govt appropriated 99 pc of RBI's profits since 2014'

'Govt appropriated 99 pc of RBI's profits since 2014'

CPI(M) general secretary Sitaram Yechury. PTI file photo

CPI(M) general secretary Sitaram Yechury hit out at the Centre on Tuesday over the record cash transfer by the RBI, alleging that the government had "appropriated" 99 per cent of the profits of India's central banking institution since 2014.

The Left leader's reaction came a day after the Reserve Bank of India (RBI) approved the transfer of a record Rs 1.76 lakh crore dividend and surplus reserves to the government, boosting the BJP-led regime's prospect to stimulate the slowing economy without widening the fiscal deficit.

"Since 2014 Modi government has appropriated 99% of RBI's profits every year to fund its propaganda campaigns. It has now siphoned off ₹1.76 lakh crores ostensibly to recapitalise banks which have been looted by Modi's cronies.

"The health of our leading Navaratnas in the public sector is badly damaged by both, falling demand and because of the financial burden imposed on them by the govt. siphoning off huge dividends. All sections, farmers, workers, MSMEs, youth and women workers have been hurt badly," Yechury said in a tweet.

"The economy and people's livelihoods have never been assaulted so mercilessly as under this government," the Communist Party of India (Marxist) leader said.

The RBI's move has kicked up a political storm.