Economy

RBI Board meet: Fear of Patel, two deputy governors quitting may temper government aggression, says report

Updated : November 19, 2018 09:22 AM IST

The government may tone down its aggression in Monday's meeting due to the fear that the Reserve Bank of India (RBI) governor and two deputy governors may quit if pushed too hard, reported The Times of India.

According to the report, both sides are expected to point out the merits of their view points in the upcoming meet that could well see a tussle between the two sides.

The report said that the "RBI representatives are expected to impress upon its 18-member board that the stress in certain sectors is not for want of liquidity but has more to do with a crisis of confidence among lenders and the absorptive capacity of small businesses."

The crux of the tension lies with the dissatisfaction of the centre in face of the crisis that the economy witnessed. The government believes that the RBI’s actions are crippling firms and impacting credit flow. The RBI, on the other hand, is apprehensive about allowing board members, who come from various fields to have a serious say on regulations.

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