Fund transfer unlikely in a hurry: banks

......So far RBI has been acting as the banker to the government. But such transfers will mean banks will now have to act as lenders to the government, requiring an amendment to the law. In 2011, the Deepak Mohanty committee set up by RBI to study the operating procedure of monetary policy had recommended auction of the government’s cash balances. Its report also acknowledged that this was under the consideration of the government and RBI. Bankers, who also met the finance minister on this matter, said, “He was open to it, but RBI had reservations, as they said that a subsection of the RBI Act would have to be amended before any auction of the government money could take place.”............

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