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Govt vs RBI: Why PM Modi wants to increase control over central bank

The Modi government has been under pressure ahead of regional polls due at the end of 2018 and general elections next year

Rbi Vs Government  |  Reserve Bank Of India  |  Rbi Governor

Reuters  |  Mumbai/New Delhi 

An incendiary speech by a top Reserve Bank of India (RBI) official last Friday blew the lid off an increasingly toxic dispute between the central bank and the government of Prime Minister Narendra Modi over monetary policy and who controls the institution's reserves. While historically there have been differences between the RBI and the nation's governments, the extent of the rift and its public nature are unprecedented. By Wednesday morning, there were Indian media reports saying that RBI Governor Urjit Patel was about to resign. The RBI declined comment. This ...

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First Published: Fri, November 02 2018. 10:11 IST