New Delhi, October 31: As the row between the Reserve Bank of India and the Centre escalates, Finance Minister Arun Jaitley said the series of communications between the government and the central bank cannot be disclosed.
The fresh remarks of Jaitley came while addressing the press on India's 77th spot in the Ease of Doing Business rankings. On being asked to specify the cause of difference with RBI Governor Urjit Patel, the Minister denied to share anything beyond what was issued in the press release earlier on Wednesday.
On whether the government has invoked the "never-used" provision of Section 7, RBI Act to direct Patel on what regulatory decisions he should take, Jaitley replied, "Communications and layers of consultations between the government and the RBI haven't ever been disclosed." RBI Act Section 7 Explained: What is the Provision 'Invoked' For 1st Time by Govt Amid Feud With Central Bank.
"Final decisions arrived at are only communicated," he further quipped, while refusing to take anymore questions on the purported feud with the RBI.
Earlier in the day, the Finance Ministry issued a statement claiming that it has sought consultation with the central bank on certain issues under a provision of the RBI Act.
Sources privy to the development said the Finance Ministry has dispatched at least three letters on different issues under Section 7 (1) of the RBI Act that gives it powers to issue any direction to the central bank governor on matters of public interest.
The government's statement, however, underlined that it "respects" the autonomy granted to the RBI. "The autonomy for the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Governments in India have nurtured and respected this," the statement noted.
(The above story first appeared on LatestLY on Oct 31, 2018 08:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).