17
Tuesday
September 2019
10:19 AM IST
News Headlines
Pakistan recall Umar Akmal, Ahmed Shehzad for uncertain Lanka series        Kohli holds on to 2nd spot as Smith retains number one position in ICC Test Rankings        Steve Smith 'proud' after summer of Ashes redemption        Some 46,000 General Motors auto workers strike in US        Sensex cracks nearly 300 pts; oil and gas stocks tank        Trump to join Modi in Houston to address 50K Indian-Americans, says White House        Car bomb kills 11 civilians in northern Syria: monitor        PM to visit Narmada dam on b'day to mark highest water level feat        Bribery case: CBI inspector surrenders before ACB        Centre should release funds for MP flood relief: Scindia        Cong, NCP to contest 125 seats each in Assembly polls: Pawar        21 Indians killed in 2,050 ceasefire violations by Pak this year: MEA        Government to rebuild Palarivattom flyover        CM demands PSC questions in Malayalam        Sourabh wins Vietnam Open Super 100 title        England close in on Ashes-levelling win after Broad double        Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal        SBI to move RBI to offer fixed-floating rate home-loans: Chairman        Hong Kong returns to violence with tear gas and Molotovs        36 people missing after boat sinks in Congo river: DRC police        
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Business News
RBI to discuss with govt issuance of sovereign bonds: Das
 
New Delhi: RBI Governor Shaktikanta Das Monday said the central bank will discuss with the government the issuance of overseas sovereign bonds, an instrument that will help reduce dependence on the domestic market for bridging fiscal deficit. The Reserve Bank of India (RBI) issues bonds on behalf of the government as part of the resource mobilisation exercise to fund gap between revenue and expenditure.

Expressing his satisfaction over the government''s move to slash fiscal deficit target, Das said it will help improve investment by the private sector as crowding out impact will be less. After the customary post-budget meeting with Finance Minister Nirmala Sitharaman, he said, "The government has made a budget announcement and we will interact with the government. I am sure the government will have a discussion with the RBI. Whatever we need to discuss with the government, will be discussed internally." Sitharaman in the Budget 2019-20 announced that the government will start raising part of its gross borrowing programme from external markets in foreign currencies.

She added that the country''s sovereign external debt-to-GDP ratio level is among the lowest globally at less than 5 per cent. It is not often that the government taps the foreign markets to raise funds. On the fiscal deficit, Das said the RBI will always be happy if it is maintained. "In this case, fiscal deficit has been improved actually from 3.4 to 3.3 per cent of the GDP. The RBI will be happy mainly because it limits so-called crowding out effect. So, that''s something positive because it gives more space for meeting the private sector borrowing," he said.

Overall, there is fiscal glide path which the government is maintaining in the last five years, he said adding that the government started with a fiscal deficit number of 4.5 per cent. "Now, it has gone down to 3.3. There is a glide path which is being maintained. I think, overall, it will be good for microeconomic situation," he added. The Centre has committed to reduce the fiscal deficit, the gap between total expenditure and revenue, to 3 per cent of the gross domestic product (GDP) by 2020-21, and eliminate the primary deficit as per the Fiscal Responsibility and Budget Management (FRBM) Act.

Primary deficit refers to the deficit left after subtracting interest payments from the fiscal deficit. With regard to additional responsibility given to the central bank for regulating housing finance companies (HFCs), he said it has been given after a lot of deliberation within the government and also with the RBI. "The RBI will do its best to live up to expectations of the additional responsibility which has been given to the RBI and I am quite confident that we will be able to deal with this additional responsibility affectively," he said.

Explaining the power of supervision and regulation vested with two entities, he said it is also the case with regard to cooperative banks. Regulations are made by the RBI and supervision is done by National Bank For Agriculture And Rural Development (NABARD), he said. It is done on the same line as far as HFCs are concerned, he said, adding that regulation will be done by the RBI and supervision by the National Housing Bank. Addressing the RBI''s central board of directors, the finance minister outlined the thinking behind the Union Budget 2019 and the focus areas of the government.

The minister also highlighted the importance of coordination between the RBI and the government. Complimenting the minister on the Budget, the board members made various suggestions for the consideration of the government, the RBI said in a statement. Prior to the minister''s address, the board in its 577th meeting reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank of India, as part of its regular proceedings.

"Among other matters, the board finalised the 3-year Medium-Term Strategy document of the Reserve Bank, which covered, inter-alia, its Mission and Vision Statement," it said. Other matters discussed by the board included issues related to currency management and payment systems, it said. The board also approved the RBI''s Budget for the period July 2019-June 2020, it added.


Some 46,000 General Motors auto workers strike in US
Sensex cracks nearly 300 pts; oil and gas stocks tank
Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal
SBI to move RBI to offer fixed-floating rate home-loans: Chairman
Inflation under control, clear signs of revival in factory output: FM
China to lift punitive tariffs on US soybeans, pork
Exports decline 6 pc; imports dip 13.45 pc
Retail inflation inches up to 10-month high of 3.21 pc in August
India & Qatar to focus on hydrocarbon sector: Pradhan
Samruddhi Corridor: MSRDC ties up loans of Rs 28,000 crore
Just 19 pc employers in India bullish on hiring in Oct-Dec qtr: Survey
Alibaba's Ma steps down as industry faces uncertainty
Ahead of festivals, SBI again cuts lending rates by 10 bps
Sensex drops over 150 pts; bank, auto stocks drag
15th Finance Commission holds meeting with Raj bodies, industry
PNB puts up for sale 11 NPA accounts to recover dues of Rs 1,234 cr
States to be key drivers of growth for making India USD 5 trillion economy: Niti CEO
FinMin sets up task force to identify infra projects for Rs 100 lakh cr investment
To create jobs, C'garh govt reduces land rates for industries
India's domestic market for computer services to grow faster than exports: UN report
KERALA NEWS
Government to rebuild Palarivattom flyover
 Thiruvananthapuram: The state government has decided to demolish and rebuild Palarivattom flyover as  
CM demands PSC questions in Malayalam
Tipplers guzzle Rs 487 crore worth liqour during onam
candidate selection for Pala by-election is an internal matter of KC(M): Chandy
INTERNATIONAL NEWS
Trump to join Modi in Houston to address 50K Indian-Americans, says White House
 Washington: US President Donald Trump will join Prime Minister Narendra Modi at Houston's mega "Howd
Car bomb kills 11 civilians in northern Syria: monitor
Hong Kong returns to violence with tear gas and Molotovs
36 people missing after boat sinks in Congo river: DRC police
NATIONAL NEWS
PM to visit Narmada dam on b'day to mark highest water level feat
 Ahmedabad: Prime Minister Narendra Modi, who turns 69 on Tuesday, will visit the site of the Gujarat
Bribery case: CBI inspector surrenders before ACB
Centre should release funds for MP flood relief: Scindia
21 Indians killed in 2,050 ceasefire violations by Pak this year: MEA
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