RBI vs MoF: Pot\, kettle & citizens

RBI vs MoF: Pot, kettle & citizens

Both the RBI and the MoF are responsible for the humungous mess of bad loans in public sector banks, the disastrous train wreck called IL&FS, and the blunder called demonetisation

Debashis Basu 

Debashis Basu

In late October-early November, the Ministry of Finance (MoF) got into a very public spat with the Reserve Bank of India (RBI). Most of us got sucked into debates on Section 7 of the RBI Act, and whether prompt corrective action (PCA) on bad banks and new defaulters is too harsh and whether the RBI needs to provide more liquidity to smaller companies.

Where should you stand on all this? If you are an ordinary citizen or a consumer, the entire debate is pointless. Neither the RBI nor the MoF cares about the many issues that affect us directly or indirectly everyday. The financial consumer ...

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First Published: Sun, November 25 2018. 23:58 IST