Parliamentary Panel To Hold Discussions With RBI To Divest Debt Management Role

The Parliamentary Standing Committee on Finance is going to hold discussions with the Reserve Bank of India (RBI) on the separation of the debt management function from the RBI, on Saturday, according to a leading media house. 

Jayant Sinha, chairman of the committee, along with former PM and Congress leader  Manmohan Singh are going to attend the meeting. 

However, the committee will only be able to put up their recommendations, which will be not binding on the Central Government. 

Meanwhile, it is expected that the recommendations will be received by the Union Government, amid the committee members which includes distinguished members from all parties and the government. 

Prime Minister Narendra Modi-led union government has already established a Public Debt Management Cell as an interim arrangement. The step was taken before an independent and statutory debt management agency, known as the Public Debt Management Agency (PDMA).  

Meanwhile, the government has borrowed nearly Rs 13 trillion from the market in 2020-21. Apart from that, the Centre is also planning to borrow more than Rs 12 trillion in the current Fiscal Year (FY) 2021-22. 

The Central Bank (RBI), as a debt manager to the Union Government, dealt with that easily for a 16-year minimum price. The RBI likewise dealt with a near equal amount of borrowing for states in a non-disruptive manner.   

The National Bank kept the business sectors stable, notwithstanding tremendous acquiring through different ordinary and unpredictable means, and by actively managing system liquidity.