Post-record payout to govt,contingency fund plunges to Rs 1.96 lakh crore: RBI annual report
Mumbai, Aug 29: The Reserve Bank's contingency fund, useful in fighting any exigency, has plunged to Rs 1.96 lakh crore as of June 30, after the Rs 52,000 crore excess payout to the government, says the central bank's annual report for FY19.
The RBI board has decided to transfer the excess reserves to government based on the Bimal Jalan committee report on the appropriate economic capital framework.
In the annual report, the central bank makes it clear that as of June 30, 2019 it "stands as a central bank with one of the highest levels of financial resilience globally."
After the payout to the government, "the balance in the contingency fund as of June 30, 2019 was Rs 1,96,344 crore compared to Rs 2,32,108 crore as of June 30, 2018," the annual report said.
It can be noted that the excess capital amount of Rs 52,000 crore had undershot market expectations of over Rs 1 lakh crore, and had been arrived at after arriving at a level for the reserves.
As per the committee, the surplus distribution policy targets having the capital reserves buffer in the range of 5.5-6.5 percent of the entire balance sheet.
According to people in the know, the committee had deliberated a lot before arriving at the level, and the 5.5 percent level will be sufficient to take care in the event of the 10 top banks going down and yet allow the RBI to play the role of the lender of last resort.
Apart from the Rs 52,000 crore, the RBI had also paid a surplus from its profit worth Rs 1,23,000 crore to the government, which is virtually double the size of the average of recent payouts.
Sources had on Wednesday explained that the higher amount was due to the gains of Rs 56,000 crore from the massive open market operations, Rs 21,000 crore from the changes in accounting norms of its forex operations, while there was also an advantage of zero provisions, which helped.
The annual report published Thursday says the RBI computed exchange gains/losses using weighted average cost method resulting in an impact of Rs 21,464 crore.
It also said income from domestic sources increased 132.07 percent to Rs 1,18,078 crore from Rs 50,880 crore in the previous fiscal.
It was mainly because of the coupon income following an increase in the portfolio of rupee securities, net income on interest under liquidity adjustment facility/marginal standing facility operations due to increase in net liquidity injection to the banking system and also write back of excess risk provision from the contingency fund.
A table on expenditure explained that the overall provisions plummeted more than 99.5 percent to Rs 64 crore from a high Rs 14,190 crore in the year-ago period as the buffer has demarcated at much lower but comfortable level.
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SC regularises interim bail granted to Gujarat-based journalist in money laundering case
New Delhi (PTI): The Supreme Court on Friday confirmed its earlier order of granting interim bail to journalist Mahesh Langa in a money laundering case linked to a matter involving an alleged financial fraud lodged by the Enforcement Directorate at Ahmedabad.
The top court on December 15 last year had granted the interim bail to Langa and fixed the case for further hearing on April 10.
A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi took note of the submissions of Solicitor General Tushar Mehta, appearing for the probe agency, and said the interim order is confirmed.
The bench agreed to the contention of Mehta that the observations made in the bail order shall not be construed as remarks on merits of the case. Senior advocate Kapil Sibal had represented Langa.
Earlier, opposing the bail plea, the solicitor general had said, "Journalists extorting money and saying that if you do not pay, I will write against you is a serious offence."
The bench had granted the relief and ordered a day-to-day trial in the case and imposed certain conditions on the journalist, including asking him not to write any article in any media outlet about his sub-judice case and seek any adjournments before the special court.
"The petitioner will furnish the bail bonds to the satisfaction of the designated special court under the PMLA," it said, adding, "The special court is directed to take up the case on a day-to-day basis for consideration of charge and if charge is framed, recording the statements of all the nine witnesses."
The bench directed Langa and his counsel in the trial court to extend "full cooperation to the special court", and said "no adjournment shall be sought or permitted on the ground that quashing proceedings are separately pending before the high court".
It said this condition is being imposed as the high court has not granted a stay on the trial proceedings.
"The Directorate of Enforcement shall also cooperate with the special judge for taking up the case on a day-to-day basis," the apex court said.
Langa will be at liberty to raise all legal contentions, objections and defence pleas, and place the material for the special court's consideration in accordance with law, it added.
"The petitioner shall not publish or write any article in his position as an assistant editor of a newspaper with respect to the allegations, which are sub-judice against him, before the special judge at Ahmedabad," the bench said.
It also made it clear that the interim bail is being granted subject to the petitioner's "good conduct and behaviour".
On July 31, last year, the Gujarat High Court rejected Langa's bail plea in the case on the grounds that if he is granted the relief, prejudice would be caused to the prosecution case.
On February 25, 2025, the ED said it arrested Langa in connection with a money-laundering investigation linked to an alleged financial fraud.
The journalist was first arrested in October 2024 in a Goods and Services Tax (GST) fraud case.
The money laundering case against Langa stems from two FIRs filed by the Ahmedabad Police on charges of fraud, criminal misappropriation, criminal breach of trust, cheating and causing wrongful loss of lakhs of rupees to certain people.
