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Taiwan sends first delegation to Gujarat investors’ summit in India

By Deepak Arora

TAITRA Chairman James C. F. Huang (left) is welcomed by Gujarat Chief Minister Vijay Rupani at the Vibrant Gujarat Global Summit in Gandhinagar in India.GANDHINAGAR, Jan 21: A delegation of 36 major Taiwan firms and medical institutions took part in the Vibrant Gujarat Global Summit from January 18 to 20 in the western Indian state, according to the Taiwan External Trade Development Council (TAITRA).

Led by TAITRA Chairman James C. F. Huang, the group was the first Taiwan has sent to the biennial event and featured industry heavyweights such as wireless telecommunications product developer Accton Technology Corp., industrial chemicals provider Eternal Materials Co. Ltd. and electric bus firm Tron-e Technology Co. Ltd.

During the three-day investors’ summit, TAITRA set up a special booth to showcase the latest products and services from 19 local companies in sectors spanning Industrial 4.0, the Internet of Things, precision machinery and smart living.

The display attracted significant interest among attendees since the firms are a strategic match with the Digital India and smart cities policy initiatives proposed by Indian Prime Minister Narendra Modi, TAITRA said.

Taiwan’s participation in the summit also showcases the country’s progress in advancing the government’s New Southbound Policy. The NSP is enhancing Taiwan’s agricultural, business, cultural, education, tourism and trade ties with India as well as the 10 Association of Southeast Asian Nations member states, five other South Asian countries, Australia and New Zealand.

Another highlight was the Taiwan Investment Seminar staged by TAITRA on the second day of the summit. More than 300 business leaders took part in the event covering the nation’s business environment and potential synergies of Taiwan-India industrial cooperation.

The seminar also saw TAITRA and Gujarat’s GESIA IT Association sign a memorandum of understanding on joint trade promotion. In addition, Taiwan Fertilizer Co. Ltd. and Gujarat Narmada Valley Fertilizers and Chemicals Ltd. as well as Taipei City-based International CSRC Investment Holdings Co. Ltd. and Gujarat Industrial Development Corp. concluded two investment agreements on exploring business tie-ups.S

Huang also delivered a speech on the sidelines of the summit where he shared the successful development experiences of Taiwan’s small and medium enterprises and called for future cooperation between the two sides in the potential-laden area.

Taiwan digital minister listed among Foreign Policy’s 100 global thinkers

By Deepak Arora

TAIPEI, Jan 25: Minister without Portfolio Audrey Tang and Taiwan venture capitalist Lee Kai-fu were named among U.S.-based magazine Foreign Policy’s 100 global thinkers.

Tang, Taiwan’s digital minister, featured in the reader’s choice section that was selected via an online poll, while Lee was listed under the technology category in the 10th edition of the ranking.

The magazine described Tang as a “star computer programmer and entrepreneur.” It also said that her use of video conferencing to address U.N. members showed the cabinet minister’s dedication to her post.

In a tweet on her Twitter account, Tang wrote that it was an honor to be included among the global thinkers. “This is recognition of Taiwan’s democracy and social cohesion,” she wrote, adding that it was also an affirmation of the resilience of the people and their ability to work together towards achieving open government.

Appointed the nation’s digital minister in 2016, Tang has overseen a number of creative measures for deepening citizen-government cooperation in crafting legislation, policies and programs. These include the establishment of a network of officers in each ministry assigned to engage with civil society and the Social Innovation Lab, a facility for fostering new social enterprises and hosting public meetings on related state-led initiatives.

Other names listed in the reader’s choice section include Tonga LGBT rights activist Joey Joleen Mataele, South Korean President Moon Jae-in and Michelle Obama, best-selling author and former First Lady of the U.S.

Lee’s argument that artificial intelligence and humankind can coexist if society changes its fundamental concept of work brought him to the attention of the magazine as well as his early innovations in speech recognition technology. The founder of Beijing-headquartered venture capital fund Sinovation Ventures, previously worked at technology heavyweights like Apple Inc., Google LLC and Microsoft Corp., according to Foreign Policy.

The annual ranking of global thinkers is a list of individuals who have made a significant impact on the world over the past 12 months, according to the publication.

Google picks Tainan for 1st green energy project in Asia

By Deepak Arora

TAIPEI, Jan 24: Google has announced that its first renewable energy project in Asia will be located in southern Taiwan’s Tainan City, a move that reflects the company’s support for the government’s green power policies.

Teaming up with local partners J&V Energy Technology Co. Ltd., New Green Power Co. Ltd. and Taiyen Green Energy Co. Ltd., as well as U.S.-headquartered Diode Ventures LLC, the internet giant will install 40,000 solar panels mounted on poles above commercial fishing ponds in the metropolis. The output of the 10-megawatt solar array will be used to power its data center in the central county of Changhua, which is connected to the same regional electricity grid.

In a statement, senior lead for Google’s energy and infrastructure program Marsden Hanna said the firm is the first corporate buyer of green power following 2017 amendments to Taiwan’s Electricity Act allowing non-utility companies to directly buy renewable energy.

“Our inaugural renewable energy project in Asia is an encouraging example of what’s possible when forward-thinking government officials, local stakeholders and companies work together for a brighter future,” Hanna said.

Google also praised the government for supporting green energy initiatives, citing the importance of a policy landscape that allows cost-effective clean energy procurement.

With development of the sector and further supportive measures from the government, Google expects more companies to follow suit, driving even larger projects across Taiwan, the statement added.

Microsoft Surface Pro 6, Surface Laptop 2 launched in India

NEW DELHI, Jan 28: Microsoft on Monday announced the availability of its Surface Pro 6 and Surface Laptop 2 in India. The new devices will be available online via Amazon and Flipkart and offline via select retail stores of Croma, Reliance, and Vijay Sales among others.

Microsoft Surface Pro 6 is available in India at a starting price of Rs 83,999. Surface Laptop 2 price in India starts at Rs 91,999.

Microsoft Surface Pro 6 comes with a 12.3-inch PixelSense display with 2736 x 1824 pixels resolution and 267ppi pixel density. The device runs on Intel Core 8th Gen i5-8250U or i7-8650U5 processor with 8GB or 16GB of RAM and Intel UHD Graphics 620. It comes in 128GB, 256GB, 512GB, or 1TB SSD storage options.

Microsoft Surface Pro 6 runs on Windows 10 Home with Office 365 30-days of trial. It features Windows Hello face authentication camera, 5.0MP front-facing camera with 1080p Skype HD video, 8.0MP rear-facing autofocus camera with 1080p full HD video, dual microphones and 1.6W stereo speakers with Dolby Audio.

Connectivity options include 1 x full-size USB 3.0, 3.5 mm headphone jack, Mini DisplayPort, 1 x Surface Connect port, Surface Type Cover port, and MicroSDXC card reader. The device is claimed to deliver 13.5 hours of local video playback.

Microsoft Surface Laptop 2 comes with a 13.5-inch PixelSense display with 2256 x 1504 pixels resolution and 201ppi pixel density. It runs on Intel Core 8th Gen i5 or i7 processor with 8GB or 16GB of RAM and Intel UHD Graphics 620. It also comes in 128GB, 256GB, 512GB, or 1TB SSD storage options.

Microsoft Surface Pro 6 runs on Windows 10 Home with Office 365 30-days of trial. The laptop Windows Hello face authentication camera (front-facing), 720p HD camera (front-facing), stereo microphones, and Omnisonic Speakers with Dolby premium.

Connectivity options include 1 x full-size USB 3, 3.5 mm headphone jack, Mini DisplayPort, and 1 x Surface Connect port. Surface Laptop 2 is said to deliver up to 14.5 hours of local video playback.

India reduced motorcycle tariff by half after my 2 minute phone call: Trump

WASHINGTON, Jan 25: US President Donald Trump has said the decision by India last year to cut the tariffs on motorcycles by half was a fair deal, but rued the high duties on American whisky.

At a White House event on the Reciprocal Trade Act on Thursday, Trump flashed out a green colour board that had examples of non-reciprocal tariffs from various countries.

"Look at motorcycles as an example. (In) India, it was 100 per cent. I got them down to 50 per cent, just by talking for about two minutes. It's still 50 per cent vs 2.4 per cent (on imported motorcycles to the US). Again, other than that, it's a very fair deal," the president said.

Trump pointed out to the high tariff by India on import of wines. "India has a very high tariff. They charge a lot of tariffs. You look at whisky... India gets 150 per cent, we get nothing."

India had last February slashed the customs duty on imported motorcycles like Harley-Davidson to 50 per cent after Trump called it "unfair" and threatened to increase the tariff on import of Indian bikes to the US.

In his interaction with lawmakers at the White House, Trump said the Reciprocal Trade Act would give the US workers a fair and level-playing field against other countries.

The US, he alleged, had been taken advantage of by many countries all over the world. "They charge us tariffs and taxes, the likes of which nobody has any understanding. They're so high and so unfair! They also have barriers where we can't go in. They have trade barriers that make it impossible for us to sell our farm products and our other products.

"Whether they think we're very nice or not so smart, they've been doing it for many, many years and we want to end it. Many of these are friends, many of these are allies... but, sometimes, allies take advantage of us even more so than our non-allies," he said.

Trump said the Reciprocal Trade Act would help to solve the problem once and for all. "Whatever the tariff for a foreign country is, we place the same tariff on us."

"What's going to happen, I think, from a practical standpoint, is they won't be charging us tariffs anymore. We'll see. Or we'll charge them a lot. Tremendous amount of money," he said.

The Reciprocal Trade Act will be an incredible tool to bring foreign countries to the negotiating table and to get them to lower tariffs on US products and also to get rid of their trade barriers, the president asserted.

America cannot lose almost USD 800 billion on trade like has been done for many years, he said.

Congressman Sean Duffy, who introduced the Reciprocal Trade Act, has granite from India among his global list of non-reciprocal tariffs.

Yes Bank names Ravneet Singh Gill as new MD, CEO

NEW DELHI, Jan 24: Yes Bank said on Thursday that it got the RBI’s approval to name Ravneet Singh Gill as its new managing director and chief executive officer. Gill of Deutsche Bank India will succeed Rana Kapoor.

In early January, Yes bank informed stock exchanges that it has shortlisted the names of potential candidates to succeed Kapoor, who is to demit office by month-end. The bank, however, did not disclose the names of the shortlisted candidates for the top post.

The Reserve Bank of India has asked the private sector lender to find replacement of Kapoor, who will continue as the MD and CEO till January 31.

“Pursuant to the recommendations of the Search & Selection Committee and the Nomination and Remuneration Committee, the Board of Directors of the bank has finalised names of potential candidates for the position of MD and CEO,” Yes Bank had said.

The private sector bank also posted a 7 percent fall in third-quarter net profit as it set aside higher provisions.

Net profit fell to 10.02 billion rupees ($140.73 million) in the three months to December 31 from 10.77 billion rupees a year earlier. That missed analysts’ average estimate of 10.60 billion rupees, according to I/B/E/S data from Refinitiv.

Former ICICI Bank CEO Chanda Kochhar, husband named accused in Rs 3,250 crore loan case

NEW DELHI, Jan 24: Former ICICI bank CEO Chanda Kochhar and her husband have been named accused by the CBI in connection with the Rs 3,250 crore loan given to the Videocon Group given in 2012. Videocon managing director VN Dhoot has also been named as accused in the FIR.

The CBI on Thursday searched four locations, including the offices of Videocon and NuPower, a company operated by Chanda Kochhar’s husband Deepak, in Mumbai. The case involves an alleged conflict in sanctioning loans by the former ICICI chief executive.

The Central Bureau of Investigation has also registered a first information report (FIR) in the matter after conducting a preliminary enquiry. The case has been filed against Deepak Kochhar, husband of former ICICI Bank MD and CEO Chanda Kochhar, in connection with the Rs 3,250 crore loan to the Videocon Group given in 2012.

The CBI initiated a preliminary enquiry after news reports claimed that Videocon Chairman Venugopal Dhoot had allegedly provided crores of rupees to a firm promoted by Deepak Kochhar and a few relatives. The alleged transfer of money took place after Dhoot’s group was given a loan of Rs 3,250 crore loan from the ICICI Bank.

Videocon had got a loan of Rs 40,000 crore from a consortium of 20 banks led by the State Bank of India. The Rs 3,250 crore loan from ICICI Bank was a part of that.

Kochhar resigned in October last year after seeking early retirement and was replaced by Sandeep Bakhshi.

ICICI has been in the grips of a controversy over allegations that Kochhar had favoured Videocon, a consumer electronics and oil and gas exploration company, in the bank’s lending practices. Videocon’s founders had an investment in a renewable energy company founded by Kochhar’s husband, Deepak Kochhar.

Kochhar, 56, had headed ICICI, India’s third-largest lender by assets, since May 2009.

India-Taiwan Trade Forum wraps up in Taipei

By Deepak Arora

TAITRA Chairman James C. F. Huang (center) is joined by Vice Minister of Economic Affairs Wang Mei-hua (fourth right), Indian Commerce Secretary Anup Wadhawan (fifth right), ITA Director Sridharan Madhusudhanan (fifth left) and other guests in opening the India-Taiwan Trade Forum in Taipei CityTAIPEI, Jan 17: The annual India-Taiwan Trade Forum was staged here in Taipei City, bringing together more than 150 business leaders and representatives from the two sides to explore new and enhanced commercial tie-ups.

In his opening remarks, James C. F. Huang, chairman of event organizer Taiwan External Trade Development Council (TAITRA), said the robust growth in bilateral trade and investment in recent years spotlights the success of the government’s New Southbound Policy and India’s Look East Policy.

These farsighted initiatives are creating mutually beneficial synergies, Huang said, adding that this positive development is expected to significantly boost Taiwan-India economic and people-to-people exchanges going forward.

Echoing Huang’s remarks, Vice Minister of Economic Affairs Wang Mei-hua said trade ties are going from strength to strength. The agreements on bilateral investment and mutual recognition of authorized economic operators concluded last December in Taipei will provide greater protections for Taiwan firms eager to expand their presence in the South Asian country, she added.

Indian Commerce Secretary Anup Wadhawan expressed confidence about the growth of economic exchanges, stating that his country is becoming the destination of choice for Taiwan manufacturers. India-Taipei Association Director Sridharan Madhusudhanan added the time is ripe for Taiwan firms to tap the potential-laden Indian market given the nation’s enormous and expanding middle class.

According to TAITRA, Huang is leading a delegation comprising more than 30 local companies to the Vibrant Gujarat Global Summit taking place from January 18 to 20 in the western Indian state. During the event, Taiwan firms are expected to sign memorandums of understanding with Indian counterparts on deals worth an estimated US $ 100 million.

Official statistics reveal that bilateral trade volume grew 10.85 percent to US$7.05 billion in 2018, with accumulated Taiwan investment in India totaling more than US$600 million as of the end of last year.

A key plank of President Tsai Ing-wen’s national development strategy, the NSP is enhancing Taiwan’s agricultural, business, cultural, education, tourism and trade ties with the 10 Association of Southeast Asian Nations member states, six South Asian countries, Australia and New Zealand. India’s Look East Policy is similarly aimed at strengthening economic and strategic connections with Southeast Asia.

Government approves merger of 3 state-owned banks

NEW DELHI, Jan 2: India’s cabinet has approved the merger of state-run Vijaya Bank and Dena Bank with Bank of Baroda, the government said on Wednesday, in a step aimed at cleaning up the country’s banking system.

India had announced the merger plan last year amid growing concerns over rising bad loans in the banking sector. Banking sector reforms are a major plank of Prime Minister Narendra Modi’s government’s plans to revive lending which has slowed as banks struggle with bad debt.

The merged bank will become India’s second largest public sector bank and will “help create a strong globally competitive bank”, the government said in a statement.

The merger will come into force on April 1, the government said.

Printing of Rs 2,000 note stops, currency still valid

NEW DELHI, Jan 2: India has stopped printing Rs 2,000 notes in a bid to slowly reduce their circulation, said a highly placed government source.

The cut in circulation does not mean the Rs 2,000 notes will become invalid. In all likelihood, the denomination will be gradually phased out. The decision comes on the back of suspicion in the Modi government that the high-denomination banknote was being used for hoarding, tax evasion and money laundering.

The RBI, India’s central bank and currency-issuing agency, did not respond to an email seeking comment. The Rs 2,000 note was introduced in November 2016, after the government demonetised Rs 1,000 and Rs 500 denominations as part of an exercise pitched as a crackdown on black money. At that time, to counter the massive cash shortage, the government flooded the country with new Rs 2,000 notes.

As of March 2018, the total value of the currency in circulation was Rs 18.03 lakh crore, of which Rs 6.73 lakh crore, or 37 per cent, was in Rs 2,000 notes, and Rs 7.73 lakh crore, approximately 43 per cent, in Rs 500 notes. The remaining was in the lower denominations.

When the Rs 2,000 note was introduced, the Narendra Modi government was criticised for bringing out a note of such a high denomination considering it had cancelled the Rs 1,000 note.

Opposition parties had argued that the Rs 2,000 note would further help money launderers and tax evaders, and backfire on one of the government’s stated aims for demonetisation — checking tax evasion and money laundering.

These fears seemed to have come true last April when many Indian cities reported a massive cash shortage.

The government suspected cash hoarding ahead of state elections, as well as stocking of money by people in the aftermath of the PNB-Nirav Modi bank fraud. The income tax department also reported massive seizures of Rs 2,000 notes during this period.

The critics included bankers, with Uday Kotak, the managing director of Kotak Mahindra Bank, questioning the government’s move to bring in Rs 2,000 notes while phasing out Rs 1,000 notes.

The squeeze in the circulation of the Rs 2,000 notes started some time back. The RBI’s annual report, released in August 2018, showed that only 7.8 crore notes of the Rs 2,000 denomination were added in 2017-18, taking the total number of bills in circulation to 336.3 crore as of March 2018. In 2016-17, 328.5 crore Rs 2,000 notes were in circulation.

The share of the Rs 2,000 notes in the total currency in circulation has come down as well: In March 2018, it was recorded at 37.3 per cent, a fall of nearly 13 percentage points from 50.2 per cent as of March 2017. In contrast, the printing and circulation of the new Rs 500 note has been stepped up. India added 958.7 crore Rs 500 notes in 2017-18, with 588.2 crore notes in circulation the previous year. The share of the Rs 500 notes in the total currency in circulation has increased too, from 22.5 per cent in March 2017 to 42.9 per cent in March 2018.

Govt doubles export incentive on onions

NEW DELHI, Dec 28: The Union Cabinet has cleared a proposal to grant higher export incentives for onions, a move that is aimed at improving the domestic prices of the commodity whose lower-than-profitable rates have hit growers in states such as Maharashtra and Karnataka.

Onion exporters will now qualify for a 10% export incentive, up from 5% earlier, under the so-called ‘Merchandise Exports from India Scheme (MEIS)’, which is administered by the directorate-general of foreign trade. The scheme mainly offers duty benefits to exporting Indian traders, which vary across products and export destinations.

“The export incentives granted for onions under the MEIS from existing 5% to 10% is in the interest of farmers. This will result in better price for onion in domestic markets,” a government statement said on Friday.

While this isn’t a direct export subsidy but an export incentive in the form of duty relief, the move will make exports more viable, which in turn is expected to encourage overseas sale of surplus onions from the domestic market, thereby helping improve prices.

“It may be noted that onion arrivals have increased in the market due to which the prices in the mandis are subdued. To contain the situation, it has been decided by the government to encourage exports of onions so that the domestic prices stabilise,” the statement added.

In July 2018, an incentive of 5% was announced for onions. The doubling of the export incentive now means that onions get the highest ever incentive offered for export of any agricultural commodity. One of the reasons for the current spell of low prices in states such as Maharashtra is the arrival of fresh harvests and simultaneous release of old stocks, which farmers were holding in anticipation of higher rates.

A larger crop in Pakistan and China, which also export onion, has undercut Indian exports, another reason for depressed domestic prices.

According to the Association of Onion Exporters’ president Ajit Shah, Pakistani onion were going for about $170 a quintal, while Indian exporters need at least $240 to be profitable.

Till October this year, the value of India’s onion exports was $264.12 million.

TVs, movie tickets to get cheaper

NEW DELHI, Dec 21: The GST Council on Saturday cut tax rates on a number of items, including vegetables, movie tickets, television sets up to the screen size of 32 inches and digital cameras, among others, providing relief to the middle class and farmers ahead of next year’s general elections.

The rate cut on about two dozen items came four days after Prime Minister Narendra Modi indicated the trimming of the highest tax slab of 28% after the ruling Bharatiya Janata Party’s (BJP’s) recent election losses in the heartland states of Madhya Pradesh, Rajasthan and Chhattisgarh.

“All the decisions taken today would have a total revenue implication of approximately Rs 5,500 crore in the whole year,” said finance minister Arun Jaitley, who is also the chairman of the GST Council.

After the 31st meeting of the panel, Jaitley, however, expressed optimism about meeting the fiscal deficit target of 3.3% of the gross domestic product (GDP) in the current financial year.

Jaitley said barring two (cement and automobile parts), all other commonly used items have been removed from the top slab, which will now have 28 items. Now only sin (tobacco and tobacco products) and luxury products are left in that slab and they would remain there, he said.

About a dozen automobile parts and cement, though commonly used, could not be brought down from 28% to 18% because of their huge revenue shares, he said. The total GST collection from auto parts is typically about Rs 20,000 crore in a financial year. The contribution of cement is about Rs 13,000 crore in a financial year.

The council felt that the trimming of these rates could be “too steep at the moment”, Jaitley said, adding that air conditioners and dish washers continue to remain at the top slab because these items are mostly used by the affluent segment of the society.

GST rates on implements often used in agriculture — such as pulleys, transmission shafts and cranks, re-traded or used pneumatic tyres — have been reduced from 28% to 18% to provide relief to farmers. Parts and accessories of carriages meant for differently persons have been reduced from 28% to 5%.

GST on air travel by pilgrims using non-scheduled or by chartered flights will now attract 5% duty for the economy class and 12% for the business class. At present, such flight operations attract 18% GST. The move will particularly help pilgrims taking flights for Mansarovar Yatra or the Haj.

The council has reduced the tax on movie tickets up to Rs 100 from 18% to 12%. Tickets priced over Rs 100 will now attract 18% tax instead of the earlier 28%, Jaitley said, adding that the move will have a revenue implication of about Rs 900 crore.

In a relief to transporters, the council has also decided to reduce GST rates on third party insurance premium of goods-carrying vehicles from 18% to 12%. In order to encourage financial inclusion, the council has exempted services supplied by banks to account holders of basic savings bank deposits under the Pradhan Mantri Jan Dhan Yojana (PMJDY).

The new rates will be implemented after they are notified by the government. A notification is expected by the month-end, finance ministry officials said. Jaitley asked businessmen to pass on the benefits of lower taxes or to face action in accordance with the law.

Jaitley said the GST rate rationalisation was an ongoing process. The council is considering proposals to rationalise taxation on residential properties where built-up flats are outside the jurisdiction of GST but under-construction properties attract 12% tax.

“We are glad that the GST Council has recognised the issue. We are, however, disappointed that the expected drop in GST rates for under-construction houses hasn’t come in during this session, but hopeful that there will be a positive outcome in the next committee meeting in January,” said Shishir Baijal, chairman and managing director, Knight Frank India.

The council has also resolved several issues faced by the industry, including taxation problems faced by solar projects.

Transfer of excess reserve to govt may bring down RBI rating: Raghuram Rajan

NEW DELHI, Dec 17: Former RBI Governor Raghuram Rajan has cautioned that transfer of excess reserve to the government may bring down rating of the central bank. Rating downgrade of the RBI from ‘AAA’ would make borrowing costlier for the central bank and will have implication for the entire economy.

Asked if the transfer of excess reserve by the RBI to the government could lead to downgrade of the rating, Rajan said: “It could...it depends on how much. It may not be an issue now...may be an issue at some point of time. That’s one concern”. This is something both the government and RBI should discuss before reaching some conclusion, he told a news channel in an interview.

“We are ‘Baa’ country. We are barely investment grade. Sometime, we need to undertake international transactions which require really high credit rating. For example swap we did in 2013. So, for that we need unimpeachable balance sheet. Why don’t we keep the RBI as an unimpeachable balance sheet with AAA credit rating that requires certain amount of equity,” he said.

Highlighting that profit of the central bank largely comes due to devaluation of Indian currency, Rajan said keeping a portion for the contingency reserves, RBI usually pays entire profit.

“RBI can pay profit and not whatever it holds for contingency reserves for movement up and down. For example, rupee that depreciated could also strengthen...so we should accommodate for that,” he said. There seems to be a tussle going on between the RBI and government over various issues, including transfer of excess capital of the apex bank.

Last month, the RBI board decided to set up a high-level committee soon for examining the Economic Capital Framework (ECF) to determine the appropriate levels of reserve the central bank should hold. Asked whether he also faced pressure when he was the governor, he said there is always a pressure on the central bank to pay the government more.

“I had it as well. I wrote a letter to the RBI when I was chief economic advisor saying perhaps the RBI should look at how much it needs to hold. When I came to RBI as governor I set up a committee which essentially said we have enough capital to pay out our entire profit.

“The three years that I was Governor, we paid the highest dividend in RBI’s history to the government. The issue at stake is not that anymore. The issue is more than that. It’s not just the profit, they want the excess. And the Malegam Committee had opined that you cannot pay more than the profit,” he said.

Rajan, who was RBI governor for three years till September 2016, is currently teaching at the Chicago Booth School of Business.

 

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Govt’s ex-economic adviser says notes ban was draconian, monetary shock


         
   

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