Ex-CEA: RBI should pump excess reserves into PSU banks

After his criticism of demonetisation, ex-chief economic advisor Arvind Subramanian has said the RBI could transfer between 4 to 7 lakh crores of its reserves to the Centre, which could then could be used to recapitalise public sector banks.He added that the decision should come within RBI and shouldn't be forced upon. In his recently released book he also blamed the Reserve Bank for failing to deal with the IL&FS crisis and the Nirav Modi fraud at PNB.