Next week, independent director and RSS-ideologist of the Central Bank S Gurumurthy said Thursday that the world's central bank did not maintain a professional precedence over the upcoming RBI meeting.
Several months ago, Mr. Gurumurti, who was appointed to the RIIP, said that the capital adequacy ratio recorded in India was 1 percent higher than Basel's global standards. It has also been used to ease credit standards for small and medium-sized enterprises, accounting for about 50 percent of the country's GDP.
According to Mr. Gurumurti, after spitting on a number of issues between the RBI and the Ministry of Finance, his words to the first public are "not at all happy."
The RBI Board meeting will focus on issues raised by the government on Monday, including simplifying the PCR norms, reducing the amount of reserves, and increasing the lender's ICD.
In November 2016, he said he appreciated the shocking demonstration of the old Rs 500 and Rs 1,000, which fell in the Indian currency by a coupon weight of up to 4.8 liras in just 18 months, as well as real estate and gold. In the case of a complex system for RBI, he noted that two different studies set an adequate reserve to maintain the default risk of the Central Bank at 12 percent and 18.76 percent. However, the PfP currently has a 27-28% reserve, which may further increase due to recent wear of rupee value.
"Thank you for the value of the dollar – a reserve bank reserve, you've bought $ 42-45, now it's 70. When you buy shares and raise stocks, you'll be grateful for this reserve as your reserve.
"I think that the government will ask about it, as I understand that the government needs only the concept of the central banks, most central banks do not have such resources, RBI has such resources, "he said.
Mr. Gurumurti delivered a lecture on the theme: "Economy: India and the World" at the Vivekananda International Foundation (VIF).
He claimed that the difference between the RBC and the government was "nothing good" and that the differences were only the result of considering the American system as a great ecosystem.
"But, in my opinion, it is necessary and necessary, that is part of the Indian mentality," he said.
He said recent improvements to the improved regulatory measures had recently been revised.
"If capital adequacy is the only one, there is not a lot of this problem, but there is plenty of sufficient capital – this is a matter of dispute between the government and the RBC," he said. .
When the CRA base violates any of the three major trigger points of the banks – ie, the risk-weighted assets ratio, non-performing assets (NPA) and assets (ROA).
11 banks of 21 countries within the framework of CSC. Indian Bank, IDBI Bank, Ukan Bank, Bank of India, Central Bank of India, External Bank of India, East Trade Commerce, Dena Bank and Maharashtra Bank. Basel III standards are capital adequacy, which BIS sets for international active banks only.
"But banks that are not internationally active, do not have to say what the universal banks say, we do not have any commercial banks, we have only our universal banks, but they do long-term lending, but Basel norm is still the same," he said. . In India, for international active and domestic banks, this is 9%.
"We do what Basel needs and banks make little money for lending, which does not have any discourse in India," he said. There are only active international banks in India, he says, all other domestic creditors. "They do not need 8% of capital, they need 9%, because some believe that the IMF has 9% of its capital," he said.
Regarding import restrictions, Mr. Gurumurti said the government was pursuing an improper policy toward imports of capital that would exceed imports of imported oil.
"We have to go through heavy import restrictions and we need to reduce the current account deficit and trade deficit in the next year, otherwise we will pay attention to this issue, and all institutions should work together," he said. Due to the increased demand for credit lending to the IMF, he denied this sector and denied the GST.
"According to the government, this sector must be financed, India's sector of the Indian economy, which accounts for 70% of India's exports, occupies 90% of India and 50% of GDP in India," he said.