ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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From 50 Years Ago (22 July 2006)

has been decided that resources for develop-all, what are reserves for, if they cannot be FROM 50 YEARS AGO ment to the extent of Rs 1200 crores in the touched when they are needed most? By next five years will have to be found from making it obligatory for the Reserve Bank to budgetary deficits. This will mean currency obtain previous permission from the Central expansion of a certain magnitude against Government, when the reserves have to be which it is neither possible nor desirable to touched, the Bill implicitly assumes a sepamaintain proportionate reserves as laid down ration between the Finance Ministry and the Vol VIII, No 29, July 21, 1956 under the present Act. Far from expanding Reserve Bank and the independence of the such reserves against the currency expansion one from the other which is just not there.Dead-wood and Danger that is contemplated, it has further been Again, by making the reserves of Rs 300 decided to draw down the sterling balances crores of foreign security

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