There is no free lunch: Rajan on special dividend to Govt

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Raghuram Rajan on Saturday rejected the idea of the Govt taking a special dividend from the RBI for recapitalisation of public sector lenders, saying ‘there is no free lunch’. “A fundamental lesson in economics is there is no free lunch. This can be seen in the matter of the RBI dividend: Some commentators seem to suggest that public sector banks could be recapitalised entirely if only the RBI paid a larger dividend to the Govt.  

Daily Pioneer
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