The surplus sum transferred from earnings during 2016-17 was Rs 30,659 crore, less than half of the Rs 65,876 crore transferred the previous year. Follow @ieexplainedThe question is, what level of reserves — call it buffer, contingency or anything else — should a central bank keep to tide over extreme financial disruptions? It does seem like the Ministry may be working on a benchmark to compare the RBI and other central banks. As foreign capital comes in, the central bank buys dollars and releases rupees which fuels liquidity, and could stoke inflation. The Minister responded by saying, “I will do nothing in any way that undermines our central bank.

Source: Indian Express September 07, 2017 18:41 UTC