Close X
Saturday, November 23, 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

ED searches 25 locations in Punjab, Rajasthan in illegal drugs case, seizes Rs 4.5 cr in cash

ED searches 25 locations in Punjab, Rajasthan in illegal drugs case, seizes Rs 4.5 cr in cash
The Enforcement Directorate (ED) said on Wednesday that it carried out searches at 25 locations in Punjab and Rajasthan on Tuesday in connection with its probe into an illegal drugs trade case and seized cash to the tune of Rs 4.5 crore. In a statement, the financial probe agency said that it carried out searches under the relevant sections of the Prevention of Money Laundering Act (PMLA) at various locations in Punjab and Rajasthan

ED searches 25 locations in Punjab, Rajasthan in illegal drugs case, seizes Rs 4.5 cr in cash

Punjab government running away from facing people: Jakhar

Punjab government running away from facing people: Jakhar
The government has divided people by its "unwarranted response on this issue and it is clear the state administration is feeling entangled after inviting people for a debate through an open invitation," Jakhar said. Reminding the state government of the perilous law and order situation, Jakhar said there are daily murders and there is no police presence.

Punjab government running away from facing people: Jakhar

BRS, BJP looted Rs 1 lakh crore in Kaleshwaram project: Rahul Gandhi

BRS, BJP looted Rs 1 lakh crore in Kaleshwaram project: Rahul Gandhi
Congress leader Rahul Gandhi on Tuesday alleged that BRS and BJP looted Rs.1 lakh crore in the Kaleshwaram project in Telangana. Addressing an election rally at Kollapur in undivided Mahabubnagar district, he said the piers of the project were sinking and collapsing. He was referring to the recent incident of sinking of a portion of Mediagadda barrage, a part of Kaleshwaram lift irrigation project.

BRS, BJP looted Rs 1 lakh crore in Kaleshwaram project: Rahul Gandhi

Road crashes in India touch all-time high with 1.68L fatalities; UP tops number of accident deaths

Road crashes in India touch all-time high with 1.68L fatalities; UP tops number of accident deaths
The number of people killed in road crashes in India touched an all time high in 2022 with fatalities crossing 1.68 lakh, which translates to 462 deaths per day or one every three minutes or 19 deaths every hour. According to the annual report released by the Ministry of Road Transport and Highways on Tuesday, a total number of 4,61,312 road accidents have been reported by states and Union Territories (UTs) during the calendar year 2022, claiming 1,68,491 lives. 

Road crashes in India touch all-time high with 1.68L fatalities; UP tops number of accident deaths

Air India pee-gate: Delhi HC issues notice to AI on accused Shankar Mishra's plea

Air India pee-gate: Delhi HC issues notice to AI on accused Shankar Mishra's plea
The federal government's priorities for improving Canada's immigration system include better aligning the number of people welcomed to the country with what the labour market needs, as well as services and infrastructure, says a report released Tuesday. The report comes ahead of the federal government's annual immigration levels plan, which Miller is expected to table in the House of Commons on Wednesday.  

Air India pee-gate: Delhi HC issues notice to AI on accused Shankar Mishra's plea

2020 riots: Delhi court sentences convict to 7 years jail for attempt to murder, another to 5 years

2020 riots: Delhi court sentences convict to 7 years jail for attempt to murder, another to 5 years
The case involved Imran alias Model and Imran, who were found guilty of being part of an unlawful assembly that engaged in rioting and used force against police officers by firing gunshots, which resulted in injuries to a constable in Brijpuri on February 25, 2020. The court noted that firing at the police officers demonstrated the convicts' readiness to challenge the authority of the state, describing this attitude as dangerous for society.  

2020 riots: Delhi court sentences convict to 7 years jail for attempt to murder, another to 5 years