Not dissatisfied with RBI, says Arun Jaitley
Agencies | Updated: Dec 29, 2018, 11:39 ISTHighlights
- The government and the RBI under the previous governor Urjit Patel were at loggerheads on several issues, including over appropriate size of reserves which the central bank should hold
- The differences reached a flash point with Patel suddenly quitting on December 10
Finance minister Arun Jaitley (File photo) NEW DELHI: Finance minister Arun Jaitley on Friday replied in negative to a question whether the government was not satisfied with the functioning of the RBI. In a written reply to the Lok Sabha, the minister quoted a report of IMF, which said supervision and regulation by central bank was strong and improved in recent years.
“No, madam,” Jaitley said to a question whether the government is not satisfied about the functioning of the RBI. The government and the RBI under the previous governor Urjit Patel were at loggerheads on several issues, including over appropriate size of reserves which the central bank should hold.
There were also differences over the lending to the small and medium enterprises, and norms concerning supervisory action over public sector banks under PCA of the RBI. The differences reached a flash point with Patel suddenly quitting on December 10.
Patel’s resignation was being speculated from the time the government cited a never-before-used provision of RBI Act to get him to consider its views on relaxing lending norms for segments such as SMEs, appropriate size of reserves RBI must maintain and easing norms for weak banks.
“No, madam,” Jaitley said to a question whether the government is not satisfied about the functioning of the RBI. The government and the RBI under the previous governor Urjit Patel were at loggerheads on several issues, including over appropriate size of reserves which the central bank should hold.
There were also differences over the lending to the small and medium enterprises, and norms concerning supervisory action over public sector banks under PCA of the RBI. The differences reached a flash point with Patel suddenly quitting on December 10.
Urjit Patel quits RBI: The 'vigilant owl' flies out amid differences with government
At the peak of a very ugly public spat between the RBI and the Centre, industrialist Rahul Bajaj, who has a history of not mincing his words, commended RBI governor Urjit Patel for showing the "spine".
Patel’s resignation was being speculated from the time the government cited a never-before-used provision of RBI Act to get him to consider its views on relaxing lending norms for segments such as SMEs, appropriate size of reserves RBI must maintain and easing norms for weak banks.
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