Reserve Bank of India (RBI) Governor Shaktikanta Das addressing a press conference on Monday said that the Central Bank will put an end to the liquidity crisis in the economy. The Governor said that he will meet the representatives of the non-banking financial company (NBFC) industry on Tuesday in Mumbai.
“I will meet non-banking financial company (NBFC) representatives in Mumbai tomorrow, we will discuss the liquidity issue of NBFCs. Liquidity conditions are being monitored constantly”, he said.
The RBI governor also cautioned that the RBI, while monitoring the liquidity situation, wouldn’t want a scenario of ‘loose money’.
The RBI has constituted a committee to look into the issues related to the Micro, Small and Medium Enterprises (MSMEs). “We are looking at what kind of governance reforms can be brought about in the functioning of the banks,” Das added.
Talking on non-performing assets (NPAs) Das said, “No target of NPAs has been given to us. There are many issues on which the government and the RBI hold discussions, but the final decision is of the RBI, on matters that are under its domain.”
Moreover, Reuters, in a report today, said that the RBI is likely to transfer an interim dividend of Rs 30,000-40,000 crore to the government by March, citing sources.
In August, the RBI had said that it would transfer Rs 50,000 crore as surplus to the government in its fiscal year ended June 30. RBI follows the July-June cycle as its financial year.
Economic Affairs Secretary Subhash Chandra Garg told reporters in August itself that the RBI had transferred Rs 10,000 crore as interim dividend in March, and the government will receive the remaining amount this fiscal.