RBI governor Urjit Patel has stressed on the need of protecting the autonomy of the central bank, reported The Economic Times.
The governor, however, refrained from directing any criticism against the government while appearing before the Standing Committee on Finance, an unidentified member of the panel told the newspaper.
While responding to questions raised on the recent RBI-finance ministry rift by panel members including Digvijaya Singh, Bhartruhari Mahtab and Dinesh Tripathi, Patel said that ‘RBI’s autonomy was essential to the interests of depositors and the credibility of the Indian economy before the international rating agencies,' said the report.
According to the report, Patel also refrained from answering to the question regarding the government’s move to initiate Section 7 proceedings. Patel, the report said, stated that he would submit written responses on some of the contentious issues raised by members.
The response from the RBI governor is significant as it comes at a time when there is an ongoing tussle between the centre and the central bank.
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