Close X
Wednesday, November 13, 2024
ADVT 
India

RBI wants ceiling for state govts’ guarantees to be fixed at 5% of revenue

Darpan News Desk IANS, 16 Jan, 2024 01:10 PM
  • RBI wants ceiling for state govts’ guarantees to be fixed at 5% of revenue

Mumbai, Jan 16 (IANS) The Reserve Bank of India (RBI) on Tuesday recommended that state governments should consider fixing a ceiling for incremental guarantees that they issue during a year at 5 per cent of Revenue Receipts or 0.5 per cent of Gross State Domestic Product, whichever is less.

The RBI has also recommended that state governments may consider charging a minimum guarantee fee for guarantees extended and additional risk premium may be charged based on the risk category and the tenor of the underlying loan.

It said that besides, state governments may publish data relating to guarantees, as per the Indian Government Accounting Standard (IGAS).

The RBI recommendations also said that the word ‘Guarantee’ should include all instruments, which create an obligation, contingent or otherwise, on part of the state government and the purpose for which government guarantees are issued should be clearly defined.

The implementation of these recommendations made by the RBI’s Working Group is expected to facilitate better fiscal management by the state governments.

The RBI has placed the report of the Working Group on State Government Guarantees on its website.

During the 32nd Conference of the State Finance Secretaries held on July 07, 2022, it was decided to constitute a Working Group comprising members drawn from the Ministry of Finance, Government of India; Comptroller and Auditor General of India; and some State Governments.

The terms of reference of the Working Group included, inter alia, prescribing a uniform guarantee ceiling for the States; uniform reporting framework for the guarantees given by the State Governments; assessing the adequacy of states’ contribution to the Guarantee Redemption Fund, etc.

MORE India ARTICLES

'Playing with fire': SC comes down heavily on Punjab Governor for withholding assent on bills

'Playing with fire': SC comes down heavily on Punjab Governor for withholding assent on bills
The Supreme Court on Friday came down heavily on the Punjab Governor for withholding assent to the bills passed by the state legislature. A bench, headed by CJI D.Y. Chandrachud, said that the Governor and the elected government being at loggerheads is a matter of "serious concern".  

'Playing with fire': SC comes down heavily on Punjab Governor for withholding assent on bills

Dhanteras sees strong demand for gold, silver ornaments; traders expect sales to surpass last year's level

Dhanteras sees strong demand for gold, silver ornaments; traders expect sales to surpass last year's level
The sale of gold and silver on the occasion of Dhanteras kickstarted on a positive note as the softening of precious metal's prices drew a good crowd to stores across the national capital. Recent falls in gold prices has given a confidence to the traders of surpassing the last year’s sales figures.

Dhanteras sees strong demand for gold, silver ornaments; traders expect sales to surpass last year's level

IT Dept seizes Rs 75 lakh in Jaipur’s Ganpati Plaza

IT Dept seizes Rs 75 lakh in Jaipur’s Ganpati Plaza
The IT Department on Friday again raided the Ganpati Plaza in Jaipur and seized Rs 75 lakh from one of its lockers. The IT Department recovered the cash from Royra Safety Wallets in Ganpati Plaza.

IT Dept seizes Rs 75 lakh in Jaipur’s Ganpati Plaza

Punjab CM implementing Centre’s agenda to end MSP on paddy: Harsimrat

Punjab CM implementing Centre’s agenda to end MSP on paddy: Harsimrat
Former Union minister Harsimrat Kaur Badal said on Friday that Punjab Chief Minister Bhagwant Mann is implementing Central government's agenda to end the minimum support price (MSP) regime on paddy by directing the state Advocate General to recommend it to the Supreme Court during a hearing on air pollution in Delhi.

Punjab CM implementing Centre’s agenda to end MSP on paddy: Harsimrat

India-US partnership truly a force for global good: Modi

India-US partnership truly a force for global good: Modi
The India-US partnership is truly a force for global good, Prime Minister Narendra Modi said after US Secretary of State Antony Blinken and Defence Secretary Lloyd Austin jointly called on him on Friday after the conclusion of the '2+2' ministerial dialogue. Blinken and Austin on Friday called on PM Modi and briefed him on their discussions in the '2+2' format.

India-US partnership truly a force for global good: Modi

6 dead after consuming spurious liquor in Haryana

6 dead after consuming spurious liquor in Haryana
Six persons have died after consuming suspected spurious liquor at Mandebari and Panjeta Ka Majra villages of Yamunanagar district in Haryana, the police said. Two have been admitted to hospitals.

6 dead after consuming spurious liquor in Haryana