- Arvind Subramanian said: RBI never expressed its fears in the financial stability report
- Rs. 94000 crore on IL & FS Group Debt, defaulted in payments last year, then crisis detected
new Delhi. Former Chief Economic Advisor Arvind Subramanian has accused the RBI of failing to regulate. Subramanian said on Friday that the RBI did not mention the risk of cash crisis in IL & FS during the last 4-5 years of financial stability report.
Twin Balance Sheet The Biggest Challenge: Subramanian
Subramanian says that RBI is one of the best institutions in the country. But, there have been some major failures like the cases of IL & FS. Subramanian also said that the problem of dual balance sheets is the biggest challenge of the country at the moment. Subramanian means that both the lenders and the takers are in difficulty.
There is a loan of Rs. 94 thousand crores on IL & FS group in the category of non-banking financial company. Last year many companies of the group defaulted in the payment of debt, then the cash crisis was detected. The effect has been on the entire NBFC sector. It is difficult to get cash for other companies in this sector. On October 1 last year, the government had formed the new Board under the leadership of IL & FS under the chairmanship of Uday Kotak.
Subramanian also came to the discussion about GDP figures in the past. In a research paper, he had said that the country’s GDP was 2.5% higher between 2011-12 and 2016-17. The government had misunderstood the claims of Subramanian.
Subramanian was Chief Economic Advisor from October 2014 to June 2018. Currently Visiting Faculty in the Harvard University’s Public Policy Department