It will be simplistic to describe the recent statement from Reserve Bank of India Governor Urjit Patel on the need to make bank regulation ownership-neutral only as a face-off between the central bank and the Union finance ministry. The implications of what Patel said last week are far more significant than just what a face-off usually means.
It’s true that Patel’s statement was a response to an earlier statement of Finance Minister Arun Jaitley, wherein he had held the regulator accountable for the Rs 129-billion letters of undertaking (LoU) scam involving state-controlled Punjab National Bank. The minister had also said
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