Economics
India Cites Never-Used Powers in Talks With RBI
- Government says it respects, nurtures central bank’s autonomy
- Rift has been simmering for months amid banking sector woes
This article is for subscribers only.
India sought to defuse growing tensions with its central bank following reports that the government had cited a never-used legal provision in trying to resolve disagreements with the monetary authority.
The Finance Ministry said in a statement on Wednesday it respects the autonomy of the Reserve Bank of India. That was after news broke that government officials had written letters to Governor Urjit Patel citing special powers the state has over the central bank, which if invoked, could lead to the government directing the RBI to do its bidding.