Nov 19 meet: Govt may have its way, but relations with RBI to stay strained

Given the way the govt-RBI relationship has developed lately, nobody can be certain there will be no new twists or turns before the all-important meeting

The ongoing stand-off between the government and the Reserve Bank of India (RBI) does not seem to be heading towards an early resolution. An apparent truce declared through a finance ministry statement on October 31 has turned out to be short-lived.

Instead, all available indications suggest that even though the government may have its say at the forthcoming board meeting of the RBI, the relations between the current top management of the central bank and the leadership team in the finance ministry will continue to remain strained, whose impact on the financial sector will be nothing less than adverse.

Indeed,