Pressure on RBI to transfer reserve endangers economic stability: AIBEA

The association's chief says RBI is now maintain the reserve at the lower band of 5.5% instead of at the higher band of 6.5%, leaving little room for it to meet unforeseen contingencies

The pressure on RBI to transfer a staggering sum of Rs 1.76 trillion to the government is fraught with risks to the economic stability of the country and is therefore avoidable, according to the All India Bank Employees Association.

C H Venkatachalam, general secretary, AIBEA said, "it is surprising that when our country’s economy is already facing turbulence and serious slowdown, instead of taking measures that will boost it, efforts are being taken which will further precipitate economic instability."  

He said, "RBI was specifically created as an independent institution mandated with the responsibility of ensuing the stability in the economy,