Surplus money transfer from RBI to depend on income: FM

News Network
November 19, 2019

New Delhi, Nov 19: Finance Minister Nirmala Sitharaman on Monday said transfer of surplus reserves from the Reserve Bank of India (RBI) to the government in future will depend on net income and other financial parameters of the central bank besides the recommendations of the expert committee on excess capital.

The surplus distribution policy of RBI is determined in accordance with section 47 of the RBI Act, 1934, Sitharaman said in a written reply to Lok Sabha.

"The quantum of surplus transfer to the government in the coming years would depend on RBI's net income, 'required realized equity' as a per cent of RBI's balance sheet and 'available realized equity' as a per cent of RBI's balance sheet in the coming years, and shall be governed by the legal provisions of the RBI Act, 1934 read with the recommendations of the committee as accepted by RBI," Sitharaman said.

The central board of the RBI, in its meeting in November 2018, in consultation with the government had decided to constitute an expert committee under the chairmanship of former RBI governor Bimal Jalan to suggest an adequate level of risk provisioning that RBI needs to maintain.

The committee, formed on December 26, 2018, was tasked to propose a suitable surplus distribution policy taking into account all the likely situations of the RBI.

The finance minister was replying to a question asked by Gopal Chinnaya Shetty if the issue of surplus reserves of RBI was resolved as per the suggestions of the Jalan committee and whether in future the government was likely to get additional dividend from RBI as per the recommendations of the said committee.

The Bimal Jalan expert committee had submitted its report to RBI on August 14, 2019.

The central board of RBI, in its meeting on August 26, 2019, had accepted all the recommendations of the committee and finalised RBI's accounts for 2018-19 using the revised framework to determine risk provisioning and surplus transfer.

"The transfer of surplus to the government for the year 2018-19, ended June 30, 2019 was made in accordance with the recommendations of the committee and accordingly a sum of Rs 1,75,987 crore was transferred by RBI to the government," the minister said in the lower house.

The transfer of reserves comprised Rs 1,23,350 crore of surplus for 2018-19, of which Rs 28,000 crore was already paid as interim dividend on March 28, 2019, and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF), Sitharaman said.

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News Network
January 17,2020

New Delhi, Jan 17: Airports in Srinagar and Jammu are to be “immediately” brought under the security cover of the CISF in view of the arrest of DSP Davinder Singh, a Jammu and Kashmir government order has said.

The two sensitive airports are to be “handed over” to the CISF by January 31, the order of the Jammu and Kashmir Home Department to the Director General of Police (DGP) said.

“This issue (CISF security at Srinagar and Jammu airports) has acquired immediacy in view of the recent developments relating to the arrest of Davinder Singh, DSP airport security, for trying to assist militants to travel to other parts of the country,” the order issued on Wednesday said.

Police had arrested Singh, a deputy superintendent of police, at Mir Bazar in Jammu and Kashmir’s Kulgam district on Saturday, along with Hizbul Mujahideen terrorists Naveed Baba and Altaf, besides a lawyer who was operating as an overground worker for terror outfits.

The two airports are guarded by the CRPF and the J-K Police at present.

The Union government had last year decided that the Central Industrial Security Force (CISF) will be handed over security of these two airports along with the one in Leh in view of their sensitive and strategic location and the threats it faced related to possible terrorist and hijack attempts.

CISF is the national civil aviation security force and at present it guards 61 airports including the ones at Delhi and Mumbai.

News agency had on January 13 reported that the Union home ministry sanctioned about 800 personnel to the CISF in order to take over security duties at the three airports of the newly created Union Territories of Jammu and Kashmir and Ladakh.

As per the original plan, the CISF was to take over Jammu airport by next month and the Srinagar and Leh airports after the spell of severe cold ends.

However, officials said, keeping in mind the arrest of the DSP and his alleged links, the latest order has been issued which also directs the J-K Police to make arrangements for accommodation, transport and other logistical requirements of the armed contingent of the CISF on a quick basis.

Once inducted at the most-sensitive Srinagar airport, the CISF will secure access control at both city and air side (tarmac area) while the CRPF will be responsible for securing the outer periphery. At the Jammu airport, the peripheral security duties will be rendered by the JK Police.

An assortment of surveillance and security gadgets like CCTVs, observation monitors, hand-held metal detectors, bullet-proof patrol vehicles and bomb detection and disposal equipment are also being provided by the airport operator, the Airports Authority of India (AAI), to the CISF.

The Union government sometime back made it clear that CISF will be the only civil airports guarding force and all such facilities in the country will be gradually brought under its command to bolster aviation security and tighten anti-terror and anti-hijack protocols.

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News Network
January 15,2020

Jammu, Jan 15: Fresh landslides kept the Jammu-Srinagar National Highway shut for the third consecutive day on Wednesday, leaving over 5000 vehicles stranded.

"There were four fresh landslides in Digdol and Panthiyal belts on the highway in Ramban district. The traffic on the highway remained closed for the third day today", a police officer told PTI.

On Monday, heavy rains triggered shooting of stones in Moumpassi, Digdole and Panthiyal areas, forcing a suspension of the traffic, the official said.

Snowfall in Kashmir side of the highway, including Jawahar Tunnel, since Sunday has resulted in blockade of the highway.

"No fresh traffic was allowed from Nagrota in Jammu for Kashmir", he said.

As a result of the blockade of the highway, over 5000 vehicles remained stranded at various places en route from Lakhanpur in Kathua district to Banihal belt of Ramban district and also on the Kashmir side.

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News Network
March 25,2020

New Delhi, Mar 25: The total number of confirmed coronavirus cases in India rose to 562, according to the Ministry of Health and Family Welfare on Wednesday.
This includes 512 active cases, while 40 infected people have already been cured or discharged.
The Union Health Ministry said that total deaths due to the disease now stand at 9, as the second death reported in Delhi is COVID-19 negative. One patient has also migrated due to the infection.
The Central government has taken several steps to contain the rapid spread of the virus including the screening 15,24,266 passengers at the airports.
Prime Minister Narendra Modi had on Tuesday announced a 21-day lockdown in the entire country effective from midnight to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.
In a televised address to the nation, Prime Minister Modi said that it is vital to break the chain of the disease and experts have said that at least 21 days are needed for it.
The Prime Minister, who had also addressed the nation last week, said the lockdown has drawn a "Lakshman Rekha" in every home and people should stay indoors for their own protection and for that of their families. 

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