In flexing for more autonomy, the RBI runs into the government’s plans as 2019 draws near.
With two deputy governors of Reserve Bank of India (RBI) taking on the government in a span of less than a week over the need for greater autonomy, some issues of discord between the central bank and the finance ministry have come to the fore. though it is not the first time the two institutions have engaged in or given rise to public discourse, the feud has never been so bitter.
The writing on the wall suggests a hardening of stance by the RBI, and the unwillingness of its governor Urjit Patel and his team to take the blame for all the ills in the banking system. The finance ministry, however, appears to be bent on discrediting the central bank’s stance on various issues. There are several fronts on which the RBI and the finance ministry have taken opposing stances, including not just interest rates, but also the burgeoning non-performing assets (NPAs), with the finance ministry laying the blame on the previous UPA government and, to some extent, the central bank, for allegedly failing in proper regulatory supervision. Another issue is the use of RBI reserves, as the government is keen to get higher dividends for pushing ahead with its various schemes, possibly with an eye on the 2019 general elections.
Esta historia es de la edición November 19, 2018 de Outlook.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición November 19, 2018 de Outlook.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
The Muslim Question
In the time of polarisation politics and othering, how to respond to the banality of hate?
Voters' Cold Wave
Heat wave, voter apathy and cyclic migration are blamed for the poor voter turnout in Bihar. Political parties are clueless about what impact will it have on election results
Occupy Ivy League
Students protesting in American universities are asking the US government to rethink its policy towards Israel
Left Side Story
Personal attacks, lower voter turnout and the BJP’s determined campaigning: how has Kerala voted this time?
Across the Pir Panjals
The newly carved-out constituency of Anantnag-Rajouri is set to witness a very close contest
Gashes in the Red Sand
Residents of the tribal district of Gadchiroli resist development models that destroy the environment
When Taps and Hope Run Dry
Peaking water scarcity and pervasive groundwater contamination have increased migration from many districts of Rajasthan.
Pilgrim's Politics
Two-time MP from Varanasi, Narendra Modi, is sculpting the eternal city in his image
Under The Model Town
Muslim ghettos in Ahmedabad are dilapidated and neglected
The Master Strategist
The Assam chief minister enjoys popularity both as an administrator and a politician despite his relentless anti-Muslim rhetoric