Money matters: Big day for RBI, Centre ties
6 years, 1 month ago

Money matters: Big day for RBI, Centre ties

Deccan Chronicle  

New Delhi: All eyes will be on the RBI board meeting on Monday in Mumbai to see how the intense public battle erupted out between the Narendra Modi government and the central bank plays out. Earlier this month, economic affairs secretary Subhash Chandra Garg had said that the government has not asked the RBI to transfer '3.6 lakh crore to it and Centre’s fiscal math is on track. After the government initiated a discussion under Section 7 of the RBI Act, RBI deputy governor Viral Acharya had warned that undermining a central bank’s independence could be “potentially catastrophic”, in an indication that it is pushing back hard against government pressure to relax its policies and reduce its powers. Former RBI governor Raghuram Rajan had recently said that board’s role historically has not been to take “operational decisions” but to focus on broader strategy as well as ensure good governance.

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History of this topic

Raghuram Rajan recalls having ’plenty of cooperation’ with govt as RBI governor: ‘Whether BJP or Congress…’
3 weeks, 4 days ago

Raghuram Rajan recalls having ’plenty of cooperation’ with govt as RBI governor: ‘Whether BJP or Congress…’

Live Mint  

Former RBI governor Raghuram Rajan recalled having an amicable relationship with the government during his tenure as RBI governor — irrespective of the party in power. The former top official also recalled a conversation with then Finance Minister Arun Jaitley where he was given the green signal to “clean up” the system after bad loans “tumbled out” during an asset …

To-do list for RBI’s new boss
1 month ago

To-do list for RBI’s new boss

Times of India  

It is as the world is weighing what Trumponomics will mean this time around, that Sanjay Malhotra becomes the 26th man to helm India’s central bank. A further context is how RBI’s role is evolving to meet its target to become the model central bank across the Global South. The new governor also takes charge as monetary policy across the …

Five of MPC's six members may soon be new
1 month ago

Five of MPC's six members may soon be new

Live Mint  

How should the appointment of the new governor of Reserve Bank of India at this critical point for the economy be read? Unless deputy governor Michael Patra, whose term ends next month, is given an extension, the six-member monetary policy committee is all set to have five new members. In his long years, Patra–he was executive assistant to governor Bimal …

Ex RBI Chief Meets Telangana CM Revanth Reddy
1 year ago

Ex RBI Chief Meets Telangana CM Revanth Reddy

Deccan Chronicle  

Hyderabad: Former Reserve Bank of India governor Raghuram Rajan on Sunday suggested to Chief Minister A. Revanth Reddy that the government explore ways of increasing revenues without burdening the people to pay for the welfare schemes. In an informal meeting with the Chief Minister and Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the finance portfolio, at the CM’s …

Finance minister Nirmala Sitharaman to address RBI board on February 14
2 years, 11 months ago

Finance minister Nirmala Sitharaman to address RBI board on February 14

India TV News  

Highlights Nirmala Sitharaman will address the post-budget meeting of the RBI's central board on Monday. Finance Minister Nirmala Sitharaman is scheduled to address the post-budget meeting of the RBI's central board on Monday and highlight key points of the Union Budget 2022-23, including the fiscal consolidation roadmap and high capex plan. It has been a custom that the finance minister …

Needed: A new relationship contract between RBI and govt
4 years, 4 months ago

Needed: A new relationship contract between RBI and govt

Live Mint  

Two recent books, one by former Reserve Bank of India governor, Urjit Patel, and the other by former RBI deputy governor, Viral Acharya, have reignited the debate on central bank autonomy in India. Section 30 of the RBI Act for instance, allows the government to “supersede” the RBI central board. The third lever of government control lies in the composition …

Will speak to RBI governor on urgency of PMC depositors: Sitharaman
5 years, 3 months ago

Will speak to RBI governor on urgency of PMC depositors: Sitharaman

India TV News  

Finance Minister Nirmala Sitharaman on Thursday promised to bring in legislative changes for upholding of interests of PMC Bank customers. Addressing a press conference, Sitharaman said secretaries from the department of financial services and economic affairs will be meeting a deputy governor of RBI soon to look into the "shortcomings" of the functioning of multi-state cooperative banks and see if …

Former RBI governor Urjit Patel says before 2014, RBI and government was slow in tackling bank crisis
5 years, 6 months ago

Former RBI governor Urjit Patel says before 2014, RBI and government was slow in tackling bank crisis

Op India  

In his first remarks after resigning from the position of governor of Reserve Bank of India, Urjit Patel held banks, government and the RBI responsible for the spiraling crisis of bad loan mess and the following low capital buffers till 2014. Patel was invited at Standford University where he spoke about the areas of concern for the country’s banking sector …

Jalan panel was finalized when Patel was still RBI governor: FM
6 years ago

Jalan panel was finalized when Patel was still RBI governor: FM

Live Mint  

New Delhi: Finance minister Arun Jaitley on Monday said the composition of the expert committee to suggest how the central bank should handle its reserves, and whether it can transfer its surplus to the government, was finalised when Urjit Patel was still the Reserve Bank of India governor. This is contrary to the belief that the composition of the high-level …

Bimal Jalan to head panel to decide on RBI cash reserves: Former central bank governor enjoys govt support, but committee to have final say
6 years ago

Bimal Jalan to head panel to decide on RBI cash reserves: Former central bank governor enjoys govt support, but committee to have final say

Firstpost  

Jalan will lead a six-member committee which will review the status, need and justification of various provisions, reserves and buffers presently provided for by the RBI The Reserve Bank of India on Wednesday formed an expert committee on economic capital framework led by former RBI governor Bimal Jalan to determine the amount of reserves it needs to keep and the …

Opinion | Finding the right balance at the central bank
6 years ago

Opinion | Finding the right balance at the central bank

Live Mint  

The regrettable mechanics of the recent change of guard at the Reserve Bank of India raises some important questions, some long overdue, about the institution’s accountability, transparency and autonomy, and the relevance of having a governor with a strong backbone. The new approach internalised that the adoption of modern monetary management in India also favoured individuals with strong macroeconomics- or …

Facts, No Fiction: There’s a new sheriff in RBI
6 years, 1 month ago

Facts, No Fiction: There’s a new sheriff in RBI

Op India  

This week has been a roller coaster ride, from high profile extradition cases, the resignation of the RBI governor and the results of recent assembly elections. That being said, it is well acknowledged that India has one of the tightest of monetary policies and that too at a time where inflation seems to be significantly lower than even RBI’s estimates. …

Arun Jaitley admits to issues with RBI on credit flow, liquidity as govt under fire for Urjit Patel's sudden exit
6 years, 1 month ago

Arun Jaitley admits to issues with RBI on credit flow, liquidity as govt under fire for Urjit Patel's sudden exit

Firstpost  

Though Jaitley did not explicitly mention it, the discussions he was alluding to were under Section 7 of the RBI Act, through which the government of the day can force down certain policies for the central bank to implement, citing national interest Mumbai: Under fire for the surprise resignation of governor Urjit Patel, senior Union ministers went on an offensive …

Make sure private banks stay in Indian hands: RSS affiliate to new RBI governor
6 years, 1 month ago

Make sure private banks stay in Indian hands: RSS affiliate to new RBI governor

Firstpost  

“There is a need for the new RBI Governor to rethink the regulatory framework for private bank ownership. None of us wants India homegrown banks to be allowed in the hands of foreign players.” RSS affiliate, Swadeshi Jagran Manch said New Delhi: Days after new RBI governor Shaktikanta Das assumed charge, an RSS-affiliated outfit on Thursday said he should “rethink” …

'RBI is accountable': New Governor Shaktikanta Das promises to consult govt, all stakeholders on key policy issues
6 years, 1 month ago

'RBI is accountable': New Governor Shaktikanta Das promises to consult govt, all stakeholders on key policy issues

India TV News  

RBI’s newly-appointed Governor Shaktikanta Das on Wednesday vowed to uphold the "autonomy, integrity and credibility" of the RBI though he added that every institution must adhere to the principles of accountability. Das took charge as the RBI Governor a day after Urjit Patel resigned amidst a tiff with the Central government on the issue of RBI's autonomy. Health of public …

RBI board meeting of 14 December stands as of now, says Economic Affairs Secretary Subhash Chandra Garg
6 years, 1 month ago

RBI board meeting of 14 December stands as of now, says Economic Affairs Secretary Subhash Chandra Garg

Firstpost  

New Delhi: Economic Affairs Secretary Subhash Chandra Garg on Tuesday said the 14 December RBI board meeting stands and there has been no change in the schedule so far. There was confusion over the fate of 14 December central board meeting of the RBI following the abrupt resignation of Urjit Patel as Governor of the central bank on Monday. Acting …

Shaktikanta Das, who oversaw demonetisation, is new RBI governor
6 years, 1 month ago

Shaktikanta Das, who oversaw demonetisation, is new RBI governor

Live Mint  

New Delhi/Mumbai: The government on Tuesday appointed Shaktikanta Das, member of the fifteenth finance commission, as the governor of the Reserve Bank of India, a day after Urjit Patel resigned at the end of a bruising tussle with the government over the regulator’s independence and the regulation of banks. Das, who was secretary in the department of economic affairs when …

RBI governor Urjit Patel has been a victim of NDA sledging, which is simply not cricket
6 years, 1 month ago

RBI governor Urjit Patel has been a victim of NDA sledging, which is simply not cricket

Firstpost  

India won a rare cricket Test victory against formidable Australia on their own soil on the day the Reserve Bank of India governor resigned citing personal reasons amid professional tensions. It turns out that unlike Virat Kohli, RBI governor Urjit Patel preferred to quit than fight it out, and for good reason. Patel and the government of India legitimately differed …

Urjit Patel resignation: An alarming challenge to the RBI
6 years, 1 month ago

Urjit Patel resignation: An alarming challenge to the RBI

Live Mint  

Government is conducting a dangerous experiment in economic management. This week, following renewed pressure to conform to the government’s thinking, the head of the Reserve Bank of India, Urjit Patel, resigned, citing “personal reasons.” Prime Minister Narendra Modi’s officials have challenged the RBI’s operational independence before, but their latest effort marks a significant escalation. It’s a pattern seen elsewhere as …

The evolution of Urjit Patel since demonetisation
6 years, 1 month ago

The evolution of Urjit Patel since demonetisation

Live Mint  

Mumbai: Outgoing Reserve Bank of India governor Urjit Patel has certainly put the government in a spot. While his resignation has not completely surprised the market that was closely watching the ongoing row between the central bank and the finance ministry, the timing has left people trying to connect the dots. Urjit Patel’s resignation seems to be the culmination of …

Opinion | Reserve Bank of India governor goes far too quietly
6 years, 1 month ago

Opinion | Reserve Bank of India governor goes far too quietly

Live Mint  

People who know Urjit Patel, the Reserve Bank of India governor, told me he would stay on and fight. But after a November meeting of the institution’s board, it looked like the central bank and the government had decided not to bring matters to a head and Patel, whose term expires in September 2019, would stick around. The terse resignation …

RBI chief Urjit Patel resigns: 6 areas of conflict with government
6 years, 1 month ago

RBI chief Urjit Patel resigns: 6 areas of conflict with government

Hindustan Times  

A protracted tiff between the Indian government and the Reserve Bank of India climaxed on Monday when central bank governor Urjit Patel resigned, days before a board meeting where he would have faced intense pressure. A protracted tiff between the Indian government and the Reserve Bank of India climaxed on Monday when central bank governor Urjit Patel resigned. Read: RBI …

How Money Markets May React to RBI Governor Patel’s Resignation
6 years, 1 month ago

How Money Markets May React to RBI Governor Patel’s Resignation

The Quint  

Ananth Narayan, SP Jain Institute Of Management And Research “It is a complete shocker. I am in Hong Kong meeting investors and the reaction internationally is one of shock. Unfortunately, this is coming on the back of what has been a pretty public disagreement between the government and RBI. All the contentious issues discussed so far, I hope and pray …

‘It’s BJP, RSS agenda’: Rahul Gandhi on RBI governor Urjit Patel’s resignation
6 years, 1 month ago

‘It’s BJP, RSS agenda’: Rahul Gandhi on RBI governor Urjit Patel’s resignation

Hindustan Times  

Congress president Rahul Gandhi on Monday slammed the government on Monday over Reserve Bank of India Governor Urjit Patel’s resignation, calling it the ‘continuation of the BJP, RSS agenda’’. What is happening that the government is getting desperate, RBI governor is not able to function?”, Gandhi said talking to reporters after the Opposition meet in Delhi. This is the result …

RBI governor Urjit Patel resigns as rift with govt widens
6 years, 1 month ago

RBI governor Urjit Patel resigns as rift with govt widens

Live Mint  

Urjit Patel resigned as governor of India’s central bank amid growing differences with the government on addressing issues ranging from problems at the country’s lenders to utilization of capital reserves. The differences came out in the open when Deputy Governor Viral Acharya, in a hard-hitting speech in October, defended the central bank’s independence and sought more freedom in supervising state-run …

RBI governor Urjit Patel resigns amid messy face-off with govt
6 years, 1 month ago

RBI governor Urjit Patel resigns amid messy face-off with govt

Live Mint  

Of immediate concern is the fallout of Patel’s departure, which came ahead of his tenure ending next September, on the financial markets, particularly with respect to the sentiments of foreign investors and rating agencies. Urjit Patel’s resignation dominated the social media discourse and opened up a fresh line of attack for the opposition, which alleged that the BJP-led National Democratic …

Govt wants to discuss RBI ‘governance issues’ with it
6 years, 1 month ago

Govt wants to discuss RBI ‘governance issues’ with it

Hindustan Times  

The Centre wants to discuss changes to the Reserve Bank of India’s governance structure at a board meeting next month, including setting up some oversight panels, economic secretary Subhash Chandra Garg told a news channel. The proposals to discuss governance at the RBI’s December 14 board meeting may further inflame tensions between the finance ministry and central bank. Worsening tensions …

Govt slugfest with RBI finally ends in a draw
6 years, 1 month ago

Govt slugfest with RBI finally ends in a draw

Deccan Chronicle  

It was an unequal fight to begin with. Raghuram Rajan, arguably the most flamboyant RBI governor in recent times, who set in motion the deep reforms of banks by tightening prudential oversight, was fond of citing the god of the bond market as the final arbiter of the central bank’s performance. An ugly public spat with the RBI could rake …

'Govt stacking up Reserve Bank of India board with allies to turn heat up on governor Urjit Patel'
6 years, 1 month ago

'Govt stacking up Reserve Bank of India board with allies to turn heat up on governor Urjit Patel'

Firstpost  

Now stacked with government nominees who can be counted on to support the administration, the Reserve Bank of India board is being transformed from having a passive advisory role into a body that can exert pressure for policy change New Delhi/Mumbai: As Prime Minister Narendra Modi’s government turns up the heat on the Reserve Bank of India governor to do …

RBI board meet today: Amid tiff with government, central bank likely to debate liquidity crisis
6 years, 1 month ago

RBI board meet today: Amid tiff with government, central bank likely to debate liquidity crisis

Firstpost  

The RBI board is also expected to discuss issues related to making relaxations to its Prompt Corrective Action framework to clean up the balance sheet of banks burdened with NPAs. Mumbai: The RBI’s crucial board meeting on Monday is expected to take up the liquidity crisis that initially triggered a tiff between the government and the central bank, according to …

Expect the best & the worst at RBI board meeting today
6 years, 1 month ago

Expect the best & the worst at RBI board meeting today

Live Mint  

Mumbai: If the acrimonious run-up to a key board meeting of the Reserve Bank of India is any indication, investors should brace for a period of uncertainty. Eventually, it will depend on the stance RBI adopts, rather what its reclusive governor Urjit Patel chooses to do at the central bank’s board meeting on Monday; so far, Patel has not signalled …

Government, RBI must work together, end turf war
6 years, 1 month ago

Government, RBI must work together, end turf war

Deccan Chronicle  

The ostentatious turf battle between the Union finance ministry and the Reserve Bank of India is not the real issue. As India still reels under the socialist module of controlling economic activities, which the present government perpetuates, the public sector banks are pushed and prodded to finance government schemes, whether it be infrastructure projects, agriculture loans and loan waivers, start-up …

Centre-RBI tussle: Balance of power, in the balance
6 years, 1 month ago

Centre-RBI tussle: Balance of power, in the balance

The Hindu  

The role of the Board of Directors of the Reserve Bank of India and its powers vis-à-vis the RBI Governor have come into focus in the ongoing tussle between the Centre and the central bank. The Centre has hinted that it is examining the option of using the powers of the RBI Board to override the Governor. As per the …

RBI vs govt: At 19 November board meet, S Gurumurthy’s economic theories and other pain points await Urjit Patel
6 years, 1 month ago

RBI vs govt: At 19 November board meet, S Gurumurthy’s economic theories and other pain points await Urjit Patel

Firstpost  

Battle lines are drawn and fireworks are likely at the central bank’s board meet scheduled for 19 November. The 18-member central board of the RBI has five members from the central bank including the governor and the rest are government nominees. The signals are clear from the recent statements of Swaminathan Gurumurthy, the RBI’s board member who was recently appointed …

RBI vs Government Row: An Open Letter to RBI Governor Urjit Patel
6 years, 2 months ago

RBI vs Government Row: An Open Letter to RBI Governor Urjit Patel

The Quint  

The fall of the Rupee’s value and the market’s performance recently is not new to you. As the deputy governor, you managed the Urjit Patel Committee and braved through the crisis. Recently, you were served a show cause notice from the Supreme Court of India for not abiding by its order to disclose the list of wilful defaulters of loans …

RBI vs govt: The 18 'wise men' tasked with supervision of Mint Street watched for next course of action
6 years, 2 months ago

RBI vs govt: The 18 'wise men' tasked with supervision of Mint Street watched for next course of action

Firstpost  

The entire board is appointed by the government under the RBI Act, which mandates the central board with “general superintendence and direction of the Reserve Bank’s affairs”. Mumbai: As an unprecedented fight plays out between the Reserve Bank of India and the government, it is the central bank’s 18 board members who are being keenly watched for their next course …

Govt to continue pressing Reserve Bank of India for relaxing norms, funds to boost lending
6 years, 2 months ago

Govt to continue pressing Reserve Bank of India for relaxing norms, funds to boost lending

Firstpost  

The reports of rift between the central bank and the government surfaced last month following which the finance ministry reportedly started discussion with the RBI under the never-used before Section 7 of the RBI Act. New Delhi: Keeping up the heat on the Reserve Bank of India, the government will continue to press the central bank to relax norms to …

Opinion | RBI is from Mars, finance ministry is from Venus
6 years, 2 months ago

Opinion | RBI is from Mars, finance ministry is from Venus

Live Mint  

India’s worst kept secret is that the Reserve Bank of India and the finance ministry do not get along. If the government has to walk alone to face the challenge of growth, we will walk alone.” Part of the reason for the excessive blood letting this time was the strategic leaks of hostile communications between the finance ministry and RBI, …

Amid Spat Between Govt & Central Bank, Focus Returns on RBI Board
6 years, 2 months ago

Amid Spat Between Govt & Central Bank, Focus Returns on RBI Board

The Quint  

But the role of the central board, in theory, is very different from what it has been in practice. The board has been a consultative body rather than a decision making one, said the person quoted above while adding that the board, if it chooses, is fully empowered to make decisions. Issues ranging from the flow of credit to small …

The cast of characters in the Govt vs RBI fight
6 years, 2 months ago

The cast of characters in the Govt vs RBI fight

Live Mint  

A day after the two sides publicly and bitterly crossed each other, the Reserve Bank of India and the union government took a step back on Wednesday. Here’s a look at the key personalities involved in the public spat: Urjit Patel, governor of the Reserve Bank of India RBI governor Urjit Patel’s silence is also his biggest weapon: he has …

RBI autonomy row: Govt cites never-used powers of issuing directions for resolving issues with central bank
6 years, 2 months ago

RBI autonomy row: Govt cites never-used powers of issuing directions for resolving issues with central bank

Firstpost  

Finance ministry and RBI are said to have differed on the central bank’s handling of weak public sector banks, tight liquidity in the market and ways of resolving bad loans in the power sector. Section 7 of the RBI Act empowers the government to issue directions to the central bank, after consultation with RBI Governor, on issues that it considers …

Govt vs RBI: Arun Jaitley, Urjit Patel settle for an uneasy truce, for now
6 years, 2 months ago

Govt vs RBI: Arun Jaitley, Urjit Patel settle for an uneasy truce, for now

Live Mint  

New Delhi/Mumbai: A day after the two sides publicly and bitterly crossed each other, the Reserve Bank of India and the union government took a step back on Wednesday. Conceding that differences can arise, the carefully-worded finance ministry release admonished RBI, saying, “ government of India has never made public the subject matter of those consultations. The first letter was …

RBI chief Urjit Patel set to meet Arun Jaitley today amid growing rift
6 years, 2 months ago

RBI chief Urjit Patel set to meet Arun Jaitley today amid growing rift

Live Mint  

Mumbai: India’s finance minister and its central bank governor are set to meet face-to-face in New Delhi on Tuesday amid mounting tension between them over the autonomy of monetary policy makers. Finance Minister Arun Jaitley will chair a meeting of the Financial Stability and Development Council, which Governor Urjit Patel is scheduled to attend. The tension prompted former Finance Minister …

RBI nominee on PSU boards create illusion of regulatory control: Raghuram Rajan
6 years, 4 months ago

RBI nominee on PSU boards create illusion of regulatory control: Raghuram Rajan

Live Mint  

New Delhi: Former Reserve Bank of India governor Raghuram Rajan is not in favour of having an RBI nominee on the boards of public sector banks, saying it creates an “illusion that the regulator is in control”. Its nominees on bank boards have no commercial lending experience and can only try and make sure that processes are followed,” he said …

The new regime at RBI under Urjit Patel
6 years, 4 months ago

The new regime at RBI under Urjit Patel

Live Mint  

Urjit Patel completes his second year as Reserve Bank of India governor on Tuesday. Patel’s predecessor Raghuram Rajan took over in the thick of the taper tantrum and D. Subbarao, who Rajan succeeded, had seen the collapse of Lehman Brothers Holdings Inc. a few days after he took over. His argument is all commercial banks are regulated by RBI under …

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