NEW DELHI,. India’s finance ministry said today the autonomy of the Reserve Bank of India (RBI) was “essential”, in an attempt to dampen a spat between the government and the central bank.
“The autonomy of the central bank … is an essential and accepted governance requirement,” the ministry said in a statement. “Governments in India have nurtured and respected this.”
The comments came after reports RBI governor Urjit Patel was on the verge of resigning over the breakdown in relations with the government. ? Reuters