RBI-Government Spat: Easier Banking Regulation: In Public (Or Government) Interest? RBI-Government Spat: Easier Banking Regulation, In Public (Or Government) Interest?
The three letters sent by the government to the Reserve Bank of India seek consultations on nearly a dozen items. Prime among them is the scuffle over the RBI’s reserves, which if done without adequate consultation, will be seen as a raid on the central bank’s balance sheet. Another set of demands have individual objectives linked to them, but when taken collectively, represent the conflict of interest inherent in government ownership of nearly 70 percent of the banking sector.