Congress has attacked Modi government over RBI's approval for transfer of a record Rs 1.76 lakh crore dividend and surplus reserves to Centre which will assist India in stimulating ecomy without widening fiscal deficit - a topic of discussion that first arose late last year when central bank's excess capital became a topic of discussion.

Congress attacks government over RBI's excess capital transfer

Taking to Twitter, Randeep Surjewala alleged without substantiation that it would be used for corporate bailouts, giving it a 'crony capitalism' angle:

Is it a sheer coincidence that ₹1.76L Cr borrowed by RBI matches with 'Missing' amount in Budget Calculations? 

Is this fiscal prudence or fiscal hara-kiri? 

Will this ₹ 1.76 L Cr be used to save BJP's crony friends? 

- Randeep Surjewala

Abhishek Manu Singhvi also attacked along similar lines, going on to call RBI's Bimal Jalan-led committee that presented a report on transfer of excess capital a 'rubber stamp':

Singhvi went on to make a 'Sacred Games' reference on matter, claiming that surplus capital was an obsession:

RBI's Rs 1.76 lakh crore decision

Goverr Shaktikanta Das-led RBI central board on Monday gave its d for transferring to government a sum of Rs 1,76,051 crore comprising Rs 1,23,414 crore of surplus for year 2018-19 and Rs 52,637 crore of excess provisions identified as per revised Ecomic Capital Framework (ECF), apex bank said in a statement.

excess reserve transfer is in line with recommendation of former RBI goverr Bimal Jalan-led panel constituted to decide size of capital reserves that central bank should hold. government was represented by Finance Secretary Rajiv Kumar in panel which finalised its report on August 14 by consensus.

A monetary boost for Government

receipts from RBI will give a fillip to government's efforts to boost ecomy from a five-year low. Finance Minister Nirmala Sitharaman h last week anunced a slew of measures to prop up growth even as government tried to stick to target of keeping fiscal deficit at 3.3 per cent of GDP. ditional cash will w give Centre more heroom for stimulating ecomy.

Modi government and RBI under its previous goverr Urjit Patel h been at loggerhes over optimum level of surplus capital with central bank.

As a result, RBI in its crucial vember 2018 board meeting decided to form a committee to review ecomic capital framework (ECF) for Reserve Bank.

(With PTI inputs)