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Tuesday, November 13, 2018

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Does RBI's economic capital framework need a 'fix'?

The government believes that the RBI is sitting on much higher reserves than it actually needs to tide over financial emergencies that India may face. Some central banks around the world (like US and UK) keep 13% to 14% of their assets as a reserve, compared to RBI's 27% and some (like Russia) more than that.

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