IMF says monitoring situation in India; bats for RBI’s independence


IMF says monitoring situation in India; bats for RBI’s independence

The IMF has said it was monitoring the reported rift between the RBI and the Centre in India, and expressed its opposition to any move that compromises the independence of central banks anywhere in the world.

There were reports of mounting tension between the Ministry of Finance and the Reserve Bank of India (RBI) over the autonomy of monetary policy makers after Finance Minister Arun Jaitley on Tuesday criticised the central bank for failing to check indiscriminate lending during 2008 and 2014 that has led to the present bad loan or Non-Performing Asset (NPA) crisis in the banking industry.

“We’re monitoring the development on that issue and will continue to do so,” International Monetary Fund (IMF) Director of Communications Gerry Rice told reporters on Thursday when asked about the row. Read More

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