A lot of heat and dust has been raised over Section 7 of the Reserve Bank of India (RBI) Act. Serious concerns have been raised over its use in the last few weeks. Experts have also pointed out that even though the government has invoked Section 7 of the RBI Act to seek consultation with the RBI Governor, using it further to issue directions to the central bank will be damaging to the financial sector and to the credibility of the country’s apex bank and regulator.
Section 7 of the RBI Act allows the Union government to issue directions to
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