What’s the tussle between RBI and the Government? Yeah so it’s CBI vs. government and then the RBI versus government. Ø The first flashpoint - government wants a special liquidity window for the Non-Banking Finance companies. The liquidity window or discount window would allow NBFCs to borrow money from the RBI in case of lack of funds.. Non-Banking Finance Companies are companies (NBFCs) registered under Companies Act 1956 are engaged in business of loans and advances, acquisition of stock and shares etc. They do not engage in agriculture, industrial activity or sale or purchase or construction of immovable property. The working and operations of NBFC are regulated by RBI. Ø Secondly, the government has proposed a supervisory body for the RBI which has several of its nominees. Opposition alleges of interference by the government into internal functioning of the Central Bank which had been so far taking its own decisions. Ø Government also wants the RBI to...
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Showing posts from November, 2018