According to Finance Ministry sources, RBI has cautioned the ministry that the scheme might turn-out to be the next big source of NPAs, which have plagued the banking system.
The rupee had a better run in the past fiscal, while it was one of the worst among its emerging market peers this fiscal year, which explains the reasons for the RBI intervention in the forex market.
The government is working with the Reserve Bank (RBI) to look into cases of financial frauds involving amounts which are below Rs. 1 lakh, IT (information technology) Minister Ravi Shankar Prasad said in the Rajya Sabha on Friday.
The senior official said the RBI and the government from time to time decides on the quantum of currency to be printed on the basis of money in circulation.
In the report, Governor Das said that despite high costs, the recognition of NPAs has improved the operational risk assessment by state-run lenders.
The panel will include Economic Affairs Secretary Subhash Chandra Garg and RBI Deputy Governor N S Vishwanathan, the RBI said in a statement.
The eventful year began with lid being taken off from the country's biggest ever banking fraud
The central bank has already issued new look currency notes in the denominations of Rs 10, Rs 50, Rs 100, and Rs 500, besides introducing Rs 200 and Rs 2,000 bank notes.
Singh’s comments came against the backdrop of Urjit Patel resigning as RBI Governor earlier this month amid a tussle between the central bank and the finance ministry on matters ranging from the appropriate size of reserves the central bank must hold to the easing of lending norms for sectors such as small and medium enterprises.
Jaitley asserted that the government does not want any money from the bank’s reserves to fix its fiscal deficit and claimed that the Reserve Bank of India (RBI)’s economic capital was never the main issue between the government and the RBI.
Speaking at Agenda Aaj Tak, he said that the government does not need a single penny from RBI's capital reserves during the current fiscal.
The board discussed a wide range of topics including the current economic situation, global and domestic challenges, matters relating to liquidity and credit delivery as well as issues related to currency management and financial literacy.
The move was necessitated following the resignation of Ashok Chawla from the post last month. The bank, however, did not disclose the candidate’s name.
Referring to Das's MA in History degree, Vyas said he is praying that the new RBI Governor doesn't make the central bank 'history' itself.
Progress on the steps taken by Governor Shaktikanta Das’ predecessor Urjit Patel to restore financial system integrity will be a key thing to assess any damage to the institution.
He also pointed out that consultations with stakeholders have become fundamental to the central bank's functioning in view of the complexity of modern day decision-making, adding he would meet the heads of the Mumbai-based state-run banks on Thursday as part of this process.
Das' appointment came at a time when the government and the RBI are engaged in a tussle over several issues including transfer of the central bank's reserves.
Shaktikanta Das was named the new governor of the Reserve Bank of India after Urjit Patel abruptly resigned.
The announcement came a day after Urjit Patel announced his resignation on Monday.
It is expected that the board meeting may be deferred as there is no regular governor. Speaking to reporters, Jha said, some communication from the government on RBI is expected.
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