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FinMin raises liquidity concerns, RBI says cash crunch not severe

After the meeting, no government official commented on anything even as Urjit Patel and his colleagues left North Block through a different exit point

Arun Jaitley

Arun Jaitley and Urjit Patel

Somesh JhaArup RoychoudhuryShrimi Choudhary New Delhi/Mumbai
Differences between the government and the Reserve Bank of India (RBI) were again evident in a meeting of the Financial Stability and Development Council (FSDC) on Tuesday, when they disagreed on the liquidity situation in non-banking financial companies (NBFCs) and the need for a separate payments regulator.

The Infrastructure Leasing & Financial Services (IL&FS) crisis and its impact on NBFCs took centre stage, with the government wanting the banking regulator to relax its liquidity squeeze but RBI Governor Urjit Patel held his ground in thwarting any spread of crisis, sources present in the meeting said.

Finance Minister Arun Jaitley, who chaired the

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First Published: Oct 30 2018 | 9:57 PM IST

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