RBI Governor met PM on Nov 9 possibly to thrash out issues
New Delhi, Nov 12: RBI Governor Urjit Patel is believed to have met Prime Minister Narendra Modi last week in a bid to work out a solution on contentious issues that have been flash point between the central bank and the government during the last few weeks.
Sources said Patel was in the national capital on Friday and met senior officials in the Prime Minister's Office (PMO).
The meetings, which some said also included with the Prime Minister, came amid a face-off between the central bank and the finance ministry over issues ranging from appropriate size of reserves that RBI must maintain to ease of lending norms to step up growth in an election year.
Sources said there are indications that the RBI may create a special dispensation for lending to small and medium enterprises, but it was not immediately clear if an agreement has been worked out to ease liquidity situation for non-banking finance companies (NBFCs) and the RBI parting with its substantial part of its surplus.
Tensions between the RBI and the government have escalated recently, with the Finance Ministry initiating discussion under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor.
RBI Deputy Governor Viral Acharya had in a speech last month talked about the independence of the central bank, arguing that any compromise could be "potentially catastrophic" for the economy.
Last week, Economic Affairs Secretary Subhash Chandra Garg had said the government was not in any dire need of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore.
He further said the only proposal "under discussion is to fix appropriate economic capital framework of RBI".
Economic capital framework refers to the risk capital required by the central bank while taking into account different risks. The Reserve Bank of India (RBI) has a massive Rs 9.59 lakh crore reserves.
Patel's meetings at the PMO came days before the RBI's crucial board meeting on November 19 during which contentious issues are likely to come up for discussion.
Sources said the government nominee directors and a few independent directors could raise the issue of interim dividend along with the capital framework of RBI.
However, any change in the central bank's economic capital framework can be carried out only after making amendments to the RBI Act, 1934.
Other issues which could be raised include alignment of capital adequacy norms with those in advanced countries and some relaxation in the Prompt Corrective Action framework, sources said, adding more measures to enhance lending to MSMEs and NBFCs may also be discussed.
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False post on ‘Operation Sindoor’: Vartha Bharati Editor files police complaint against three indivi
Mangaluru: A formal complaint has been filed at the Mangaluru South Police Station against three individuals and a news website for allegedly spreading false and provocative information linking the name of journalist B.M. Basheer and the Kannada daily Vartha Bharati to a fabricated story titled ‘Operation Sindoor’.
The complaint was lodged by B.M. Basheer, News Editor of Vartha Bharati, who has demanded legal action against those involved in sharing what he termed as misleading and inflammatory content on social media platforms and websites.
According to the complaint, a Facebook post by a user named Nitin Shamanur titled ‘Operation Sindoor: Kannada journalist's cousin's wife is finished’ included false claims along with a photograph of a woman and soldiers. The same post was reportedly shared by Santosh Hegde on his Facebook account and also posted from another Facebook profile under the name Bettampady Chandra.
Basheer further alleged that the same content was published on a website named newsputtur.com, contributing to the spread of misinformation.
“This misleading and provocative rumour under the name ‘Operation Sindoor’ is circulating fake news in the public domain. It is likely to disturb communal harmony and create unrest in society. The coastal region is already witnessing a sensitive situation due to recent developments, and such false narratives could further aggravate tensions,” Basheer stated in his complaint.
He has demanded that a case be registered and legal action be initiated against the individuals – Santosh Hegde, Nitin Shamanur, Bettampady Chandra – as well as the editor of newsputtur.com, following a thorough investigation.
The Mangaluru South Police have taken note of the complaint and initiated a preliminary inquiry into the matter.
