Welcome 'non-event'

Govt, RBI deserve credit for defusing the crisis

A day after the marathon board meeting of the Reserve Bank of India, many in the financial markets termed it a “non-event”. That in itself is a ringing endorsement of the maturity shown by the government and the central bank in defusing the crisis that followed a public spat between the two sides. Broadly speaking, while the government was concerned about a lack of liquidity and lending in the economy, the RBI management was protective about adherence to prudential norms. The disagreements led to a full-blown crisis, with talks of the government reportedly initiating proceedings under Section 7 of the