THE HINDU RBI has Rs.3 lakh cr in excess reserve
CONTEXT:
- Bank of America Merrill Lynch (BofAML) notified the excess reserves that RBI holds could be up to Rs.3 lakh crore ($43 billion) or 1.5% of the GDP (Gross Domestic Product).
- This also includes the excess capital in contingency reserves and revaluation eserve
- The BofAML report stated that capping overall reserves at 20% from 25.5% will release Rs. 1.96 lakh crore.