Govt respects independence, autonomy of RBI: FinMin
Team Udayavani, Jan 15, 2017, 12:37 PM IST
New Delhi: Refuting allegations of interference by an RBI union, the finance ministry on Saturday said the government fully respects independence and autonomy of the Reserve Bank of India.
“Consultations between the government and RBI are undertaken on various matters of public importance wherever such consultation is mandated by law or has evolved as a practice. Consultations mandated by law or as evolved by practice should not be taken as infringement of autonomy of RBI,” the ministry said in a statement.
The United Forum of Reserve Bank Officers and Employees in a letter to RBI Governor Urjit Patel had said employees were feeling “humiliated” by events since demonetisation and alleged that the government has been impinging on the central bank’s autonomy by appointing an official for currency coordination.
“It is categorically stated that the government fully respects independence and autonomy of the Reserve Bank of India,” the finance ministry said.
The union raised the issue after at least three former governors — Manmohan Singh (former prime minister), Bimal Jalan and Y V Reddy — flagged concerns about the central bank’s functioning. Former deputy governors, including Usha Thorat and K C Chakrabarty too have voiced their worries.
The letter said the RBI staff has carried out its job excellently after the move to ban 87 per cent of the outstanding currency by the government.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Markets wipe out early gains on fag-end sell-off; Nifty slips from record
Sebi asks NSE to asses Linde India’s related party transactions
Nifty hits all-time high; Sensex nears lifetime peak
Indian markets trade firm on global rally, fresh foreign fund inflows
Manufacturing licence of 10 Patanjali’s Divya Pharmacy products suspended
MUST WATCH
Latest Additions
Nadda holds roadshow in Karnataka’s Haveri
Markets wipe out early gains on fag-end sell-off; Nifty slips from record
We don’t send dossiers on terror; ‘Bharat ghar mein ghus ke marta hai’: PM Modi
Cricket: India’s T20 World Cup squad announced
SC appreciates ‘marked improvement’ in public apology by Ramdev, Balkrishna, Patanjali