Published On: Wed, Oct 31st, 2018

Rift between RBI and central government widens

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The ongoing debate between the Central Reserve Bank and the Ministry of Finance is not showing any signs of letting up. On Tuesday, Finance Minister Arun Jaitley blamed the bank for NPA’s in the country, and now resignation is also included in the list of options available to Central Reserve Bank Governor Urjit Patel. According to a leading business channel, there is a possibility of the resignation of Urjit Patel in the current situation.

Based on sources in the Central Government and RBI, the report has claimed that there has been a significant difference between the RBI and the Central Government. This difference can not be filled now. In such a situation, the top officials of the Reserve Bank claim that all options are open in front of the central bank’s autonomy.

It is worth mentioning that in the last few weeks, the rift between the Central Bank and the Central Government, was disclosed by RBI’s Deputy Governor, Viral Acharya. Acharya said that the attack on the autonomy of the central bank can be very dangerous for the country.

Immediately after this statement of Viral, Union Finance Minister Arun Jaitley attributed the central bank to the problem of the NPA’s standing in front of banks in the country. Jaitley claimed that between 2008 and 2014, the country’s banks have given a great deal of credit. At the same time, Jaitley alleged that during this period the Reserve Bank ignored the role of the loan being given at such a large level in contrast to its role.

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