Independence of RBI does not mean independence from Republic of India: Sanjeev Sanyal - watsupptoday.com
Independence of RBI does not mean independence from Republic of India: Sanjeev Sanyal
Posted 02 Mar 2019 05:31 PM

Agencies
the Reserve Bank of India (RBI) has been given "unprecedented powers" under the Narendra Modi government, said Principal Economic Advisor to Finance Ministry Sanjeev Sanyal.

Speaking at the India Today Conclave 2019 during the session 'Caged birds: Institutions under assault', Sanyal said RBI's independence does not mean that it is not a part of the government.

"Independence of RBI does not mean independence from the Republic of India. It is still part of govt," he said.

He admitted that the unregulated banking sector or non-banking financial organisations faced problems and that is the reason why the government was asking the apex bank to release more funds.

Sanyal, however, made it very clear that the RBI was given full autonomy to implement its own policies.

His comments came in the backdrop of a prolonged tussle between the RBI and Centre over the release of funds.

The defaults at infrastructure lending major IL&FS led to a liquidity crunch in the shadow banking or NBFC sector, thus reducing chances of small-scale industries to get loans from such institutions.

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