Mumbai, October 31: The rift between Reserve Bank of India (RBI) and the government has widened, and this could be the reason, why RBI Governor Urjit Patel is considering resignation. This comes on the back of Finance Minister Arun Jaitley’s scathing criticism of the central bank’s “lending spree”, as reported by CNBC TV 18. A source quoted in the report said that there is "irreversible breakdown between RBI governor and the government". RBI Governor Urjit Patel Seeks More Powers to Effectively Regulate PSBs.

Jaitley on Tuesday blamed RBI for failing to stop a lending spree between 2008-2014 that left banks with huge bad debts, inflaming a row that recently erupted between the government and the central bank. Jaitley chaired the 19th Financial Stability and Development Council (FSDC) meeting in New Delhi, where he reviewed the liquidity crisis prevalent in Non-Banking Financial Companies (NBFCs).

The council under Jaitley reviewed the current global and domestic economic situation and the financial sector's performance. They also reviewed the issue of real interest rate and also decided that both the regulators and the Centre should keep a close watch on the developing situation and take all necessary measures.

(With inputs from ANI)

(The above story first appeared on LatestLY on Oct 31, 2018 10:35 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).