Explorer

Design of recapitalisation process critical: Former RBI Governor

New Delhi [India], Nov. 4 (ANI): In the wake of the Rs 2.11 lakh crore-worth public sector bank recapitalisation plan that was announced recently by Union Finance Minister Arun Jaitley, former Reserve Bank of India (RBI) Governor Dr. Y.V. Reddy dubbed the design of the plan to be "critical".

Delivering the 20th JRD Tata Memorial Lecture under the aegis of the ASSOCHAM here, the former RBI Governor stated that the recapitalisation proposal put forth by the government is for regulatory purpose, adding that the government is exploring more options to produce capital.

"The bond has to be carefully designed whether it should have SLR status, what would be holding period or maturity status. All these things have to be carefully designed, as they will have an impact on the bond market. The government has to be careful about the spillover effect as the amount is large," he said.

On the NPAs front, Reddy opined that dragging corporate defaulters to the National Company Law Tribunal (NCLT) may not be the best option to resolve the issue of NPAs.

In the last week of October, Jaitley had announced an unprecedented PSU banks recapitalisation program of Rs 2.11 lakh crore, out of which Rs. 1.35 lakh crore will come from recap bonds, and rest from markets and budgetary support.

"To improve the lending capacity of the banks, we have announced the recapitalisation programme, which is essential to increase public spending on infrastructure, and that expenditure on infrastructure," Jaitley said at a press conference here.

Adding to this, he said there is a need to increase public investment, for which, bold steps will be taken by the government to recapitalise banks in the country. (ANI)


This story has not been edited. It has been published as provided by ANI

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headline

Mukhtar Ansari Death: UP Court Orders Probe After Son Claims Father 'Poisoned' In Jail — Top Points
Mukhtar Ansari Death: UP Court Orders Probe After Son Claims Father 'Poisoned' In Jail — Top Points
I.N.D.I.A Bloc In Bihar: Here's How Congress, RJD Have Decided To Share Seats After JD-U's Exit
I.N.D.I.A Bloc In Bihar: Here's How Congress, RJD Have Decided To Share Seats After JD-U's Exit
'System Ki Dhajjiyan Uda Rahen Hain': Hardeep Puri Jabs Kejriwal At ABP Shikhar Sammelan 2024
'System Ki Dhajjiyan Uda Rahen Hain': Hardeep Puri Jabs Kejriwal At ABP Shikhar Sammelan 2024
'BJP Should Pay Rs 4,600 Crore': Congress Slams Income Tax Dept, ECI After Getting Rs 1,700-Crore Notice
'BJP Should Pay Rs 4,600 Crore': Congress Slams Income Tax Dept, ECI After Getting Rs 1,700-Crore Notice
Advertisement
for smartphones
and tablets

Videos

Kundali Bhagya's PalVeer (Paras Kalnawat & Sana Sayyad) Celebrate One Year Journey TogetherShehzada Dhami & Niti Taylor Shares Instagram Post, Spark Rumours Of A New ShowHot News: Jay Bhanushali Wear's Wife Mahi's Pink Maxi, Daughter Gets EntertainedHot News: Shivani Joshi's Special Birthday Post For Kushal Tandon Is A Testament To True Friendship

Photogallery

Embed widget