Stand-off between govt and RBI not a good situation, says cental bank board member S Gurumurthy
Tensions between the RBI and the government have escalated recently, with the Finance Ministry initiating discussion under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor
New Delhi: Ahead of the much talked about board meeting of the central bank, RBI board member S Gurumurthy on Thursday said the stand-off between the government and the Reserve Bank was not a happy situation.
The comment comes amid the ongoing rift between the Finance Ministry and the RBI over several issues, including capital framework of the central bank and easing of lending norms for the NBFC sector.
Delivering a lecture on 'State of the Economy: India and the World' at the Vivekananda International Foundation (VIF) here, Gurumurthy also said imposition of tight provisioning norms for bad loans in one go created problems for the banking system.
The stand-off between the government and the RBI is not a happy thing at all, he said.
Gurumurthy further said India should not go beyond what has been prescribed in the Basel capital adequacy norms and made a case for enhancing credit for the MSME sector.
Tensions between the RBI and the government have escalated recently, with the Finance Ministry initiating discussion under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor.
The RBI's board is meeting on 19 November.
In an affidavit, the Union government said the AAP government has implemented the 'one nation-one ration card' plan only in Circle 63 Seemapuri
Tokyo Olympics 2020: Haryana government announces cash reward of Rs 6 crore to gold winners from state
The state government will give the silver winners Rs 4 crore while the bronze medallists will get Rs 2.50 crore.
Cairn has identified $70 billion worth of Indian assets overseas for potential seizure to collect award, which now totals to $1.72 billion after including interest and penalty