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Govt may have invoked never-used powers in talks with RBI Governor

The RBI has received letters from the government seeking Governor Urjit Patel's views on issues ranging from the authority's handling of weak state-run lenders to tight liquidity

Narendra Modi, Arun Jaitley, Urjit Patel
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(From left to right) Prime Minister Narendra Modi, Finance Minister Arun Jaitley and RBI Governor Urjit Patel

Anirban Nag & Anto Antony | Bloomberg
India has cited a never-used legal provision in trying to resolve disagreements with the nation’s central bank, which could lead to the government directing the monetary authority to do its bidding if invoked, people with knowledge of the matter said.
 
The central bank has received letters from the government seeking Governor Urjit Patel’s views on issues including the authority’s handling of weak state-run lenders, tight liquidity in the market, and resolving bad loans at power generators, the people said, asking not to be identified because they aren’t authorized to talk to the media. The law cited by the government is

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First Published: Oct 31 2018 | 11:00 AM IST

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