RBI Central Board meet: Governance Framework among key issues discussed

The Reserve Bank of India's (RBI) Central Board on Friday deliberated on the banks's Governance Framework during its meeting here and concluded that the matter required further examination, the central bank's Chief General Manager, Jose J. Katoor confirmed.

In a statement, Katoor said that during the meeting under the Chairmanship of newly-appointed Governor Shaktikanta Das, the Board reviewed, inter alia, the current economic situation, global and domestic challenges, and matters relating to liquidity.

The meeting comes in the wake of tensions between the RBI and the government regarding the former's 'independence', with former Governor Urjit Patel abruptly resigning from his post on Monday citing "personal reasons".

The recent rift between the RBI and the union government was widely debated after Deputy Governor Viral Acharya stressed the need to ensure the central bank's independence.

Questions were also raised on the alleged interference in RBI after the government invoked the never-used Section 7 of the RBI Act, which allows the government to "give such directions to the RBI as it may after consultation with the Governor of the Bank consider necessary in the public interest."

A day after Patel's stepping down, former economic affairs secretary Shaktikanta Das was appointed as the new governor of the central bank with immediate effect.