INSUBCONTINENT EXCLUSIVE:
Jaitley had on Thursday defended government's demands that include further liquidity for NBFCs.New Delhi: Finance Minister Arun Jaitley on
Friday said sovereign government flagging issues of credit and liquidity does not infringe on the Reserve Bank's autonomy and hoped things
will work out with the central bank in future
On a day when the board of Reserve Bank of India (RBI) under its new Governor Shaktikanta Das bought more time to review the government's
government respects the autonomy of the central bank and because we respect the autonomy of the central bank that is why we told them these
pointed to the RBI as they lied within its power, domain and jurisdiction."I can't conceive how an elected sovereign government bringing to
the notice and flagging the issue of credit and liquidity can in anyway infringe the autonomy," he said adding if there is a scarcity of
governance framework of the central bank and decided that the matter required further examination, the RBI said in a statement after the
government over parting with RBI's reserves and demands to ease lending curbs
Jaitley said not just the government but industry associations like FICCI too should have gone to the Reserve Bank to narrate the challenges
"A communication and dialogue and bringing to the notice of the empowered authority is a part of the manner in which economic systems
"And that is why this whole debate, public discourse went in a direction where telling the concerned institution that these are the issues
to be flagged and this is where the challenge has to be addressed can't be an aberration, it's a necessity," he said."I do hope that things
relating to liquidity and credit delivery to the economy, besides discussing the current economic situation, global and domestic challenges,
which make regulatory decisions, in a bid to curb the RBI's unilateral decision-making powers
The RBI at present decides the regulatory and operational issues of banks and informs the board later
had on Thursday defended the government's demands that include further liquidity for non-banking finance companies (NBFCs) and easy lending
