Operational independence of central banks like RBI key for carrying out responsibilities: IMF
The RBI played a vital role in ensuring economic and financial stability, and was an important counterpart and partner for the IMF, Gerry Rice, IMF Director, Communication, said
Washington: The International Monetary Fund (IMF) on Thursday said "operational independence" of central banks like the Reserve Bank of India (RBI) was important for carrying out their responsibilities.
Gerry Rice, IMF Director, Communication, said this in response to a question on the recent developments at the RBI. He, however, added that his views were in the context of international experiences.
"International experience shows that operational independence is important for a central bank to carry out its responsibilities," Rice said in response to a question.
The RBI played a vital role in ensuring economic and financial stability, and was an important counterpart and partner for the IMF, he said.
Rice added that the IMF had "taken note of" Urjit Patel as the governor of the RBI and the appointment of Shaktikanta Das as his replacement.
"We believe Patel was instrumental in formulating the Reserve Bank of India's inflation-targeting framework as a deputy governor and in successfully implementing it as governor," he said.
"In wishing Governor Patel all the best in the future, we also look forward to working closely with Governor Das and wish him well in his new incarnation," Rice said.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
The court said the Central Government should implement 'as soon as possible' interest waiver on loans of up to Rs 2 crore under the RBI moratorium scheme in view of the COVID-19 pandemic
Extension of loan moratorium period by six months may affect overall credit discipline, RBI tells SC
In an affidavit, the RBI has said that a long moratorium period could also increase the risks of delinquencies after resumption of scheduled payments
The Indian central bank also clarified that all farm credit exposures, including from NBFCs, can be recast under the pandemic-related resolution framework issued in August, but loans to allied activities are excluded