INSUBCONTINENT EXCLUSIVE:
The government has sent at least three letters on different issues under Section 7 (1) of the RBI ActAmid reports of its mounting tension
with the RBI, the Finance Ministry Wednesday said the government has "nurtured and respected" autonomy of the central bank and has been
holding extensive consultations with it on many issues
"The autonomy for the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement
Government of India has nurtured and respected this," it said in a statement
Both the government and RBI, in their functioning, have to be guided by public interest and the requirement of the Indian economy, it
statement, however, did not mention of the government citing the never-before-used power of issuing directions to RBI Governor to seek a
resolution to differences with the central bank
The government has sent at least three letters on different issues under Section 7 (1) of the Reserve Bank of India Act that gives it powers
subject matter of those consultations
Only the final decisions taken are communicated," the statement said
"The government, through these consultations, places its assessment on issues and suggests possible solutions
