3 Point Analysis | Govt eyeing RBI’s capital to bridge fiscal gap

Moneycontrol News

The relationship between the Reserve Bank of India (RBI) and the government appeared to have hit rock bottom with a number of issues yet to be ironed out. While some of the contentious issues may be addressed quickly under the new governor Shaktikanta Das, especially the ones pertaining to targeted flow of liquidity, it remains to be seen how quickly the government gets access to RBI’s capital to bridge its fiscal shortfall.

Sakshi Batra does a 3 point analysis on whether the government will be successful in getting access to RBI’s capital and how rating agencies will react to such a myopic approach. Also, global investors have to be convinced that the the country is walking down the right fiscal path.