Government To Continue Pressing RBI For Relaxing Norms, Funds

Sovereign Bonds

In his interview with the news channel, the former Governor described RBI as a "seat belt", which would save the "driver" - the government - if an accident occurs. According to recent reports, Patel had threatened to resign following serious differences with the central government. Sources cited by the website pointed out the RBI governor is "not only exhausted of the fight with the government, but it has also been impacting his health in a big way".

"We will do everything to protect the interests of the economy", one of the members of the RBI central board told Reuters, noting the governor and his team would have to "explain, defend and justify" their decisions at the board meeting.

The government wants the RBI to part with most of its profit as dividend. "Protect the nation", he tweeted and also posted the report.

However, the government is of the view that the RBI has over-estimated its capital reserves requirements resulting in an excess capital of Rs 3.6 lakh crore.

It has also mandated banks to declare a delinquent borrower even if payments were overdue by a day.

Sources had said that the RBI's board meeting on November 19 was pre-scheduled and routine.


The rift between the RBI and the Modi government turned ugly after Patel's deputy, Viral Acharya, said last week that attempts to undermine the central bank's autonomy could prove to be 'potentially catastrophic'.

Apart from Patel and his four deputies, there are 13 nominated directors on the RBI's board.

"I think certainly it would be best if both sides respected each other's motivation and thoughts. the RBI after listening to the government has provided the best professional answer. and historically it has done that", he said.

"Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution; their wiser counterparts who invest in central bank independence will enjoy lower costs of borrowing, the love of worldwide investors, and longer life spans", Acharya had said.

It is unclear, though, how the government will seek to exert pressure through the RBI's Central Board as the body is a largely symbolic one, which has never had a direct say in the bank's directives and policies, according to two additional sources with knowledge of the law under which the central bank operates.

Two of the contentious issues behind the ongoing spat between the government and the central bank which of late has reached historic lows, has been North Block's call for addressing the liquidity crunch.

Related News:

  • Samsung is all set to launch its first 4 rear camera phone

    Samsung is all set to launch its first 4 rear camera phone

    The Galaxy F is expected to be released in limited quantities, and rumors suggest that the phone's price tag will approach $2,000. The NPUs will be used for better camera performance by working with the Image Signal Processor or the ISP .
    Virgin veteran honour embarrassing: Hanson

    Virgin veteran honour embarrassing: Hanson

    The move was backed by the Prime Minister Scott Morrison, but some have described it as "US-style patriotism without substance". Defence Industry Minister Steve Ciobo said it was "tremendous" for the airline to salute the service of soldiers.
    Ottawa players caught on video ripping team, coach

    Ottawa players caught on video ripping team, coach

    In it, Nenshi was caught badmouthing Uber's then-chief executive Travis Kalanick. But Champ said it could be argued that the players' attitudes are of interest.
  • Tallahassee Mayor Gillum, Republican former Rep. DeSantis cast votes

    Tallahassee Mayor Gillum, Republican former Rep. DeSantis cast votes

    The stark differences between the two candidates and the negative nature of the race were crystallized in two vitriolic debates. The big victor : You guessed it, the Democrat on the ticket, Tallahassee Mayor Andrew Gillum , who managed to secure a victory.
    Chris Watts Reaches Plea Deal In Murder Case To Avoid Death Penalty

    Chris Watts Reaches Plea Deal In Murder Case To Avoid Death Penalty

    Under Colorado law, a first-degree murder conviction carries a mandatory life sentence without the possibility of parole. Mr Rourke said he was not willing to dismiss any charges in exchange for the promise of guilty pleas.
    Rihanna sends cease and desist to Trump

    Rihanna sends cease and desist to Trump

    It then references Rihanna's surname, Fenty, and says she has not given Mr Trump permission to use her music. Rihanna was not happy when she found that her music was being played at rallies for Donald Trump .
  • Boeing is said close to issuing 737 Max warning after crash

    Boeing is said close to issuing 737 Max warning after crash

    Investigators have also revealed that the Lion Air 737 was intact when it hit the water with the engines running at high speed. CNN said Indonesian officials are working with Boeing and safety experts to further investigate the airspeed indicator issue.
    Interstellar asteroid could be 'alien' mission searching for life

    Interstellar asteroid could be 'alien' mission searching for life

    That and the object's unusual movements suggest it could have a source of power beyond gravitational pulls, they said. The change in course and speed was so pronounced they concluded it "might be a lightsail of artificial origin".
    Backers of Brexit funding campaign investigated for

    Backers of Brexit funding campaign investigated for "suspected criminal offences"

    Mr Banks has faced claims that money to fund Leave.EU came from Russian sources - something he has repeatedly denied. Both Bilney and Banks deny any wrongdoing, with the latter posting a flurry of tweets on Friday evening.
  • Cesar Sayoc Held Without Bail After First NY Court Appearance

    Cesar Sayoc Held Without Bail After First NY Court Appearance

    Prosecutors say the most recent crude bomb was recovered last Friday in California, addressed to liberal activist Tom Steyer . President Donald Trump agreed to be held without bail on Tuesday during his first appearance in federal court in NY .
    Iowa woman finds forgotten $343.9 million Powerball ticket thanks to friend’s text

    Iowa woman finds forgotten $343.9 million Powerball ticket thanks to friend’s text

    West, a single mother of three daughters has played the lottery twice a week, when she could afford the tickets. She went to find her tickets - which she thought were in her purse - and didn't find them.
    Sharrif Floyd suing Dr. James Andrews for $180M

    Sharrif Floyd suing Dr. James Andrews for $180M

    In the aftermath, the Vikings placed Floyd on the non-football injury list, which was the subject of an NFLPA grievance. Floyd expected the operation to be a routine arthroscopic procedure that would require three to four weeks of recovery.


Most liked

"Elon Musk" Crypto Scam May Have Snagged Dozens Of Bitcoin (BTC)
Be aware that this is a scam and you should not by any means send Bitcoin to an address that claims to be owned by Elon Musk. The scam is made to seem more trustworthy as various other compromised accounts reply to the tweet claiming that it works.

Adele shares throwback picture to celebrate Spice Girls reunion tour
Delays in traffic meant Bunton and Theakston had to extend their show past its usual 09:00 conclusion in order to speak to the group.

Meghan Markle wore a see-through skirt: see photos
And according to the Sunday Express , the Queen has broken protocol again by inviting Doria to Christmas dinner this year. Mary Magdalene church, which are followed by a Christmas Day meal featuring a Norfolk turkey as the main attraction.

‘Breaking Bad’ Movie in the Works With Series Creator Vince Gilligan
The article also says it'll be called " Greenbriar ", but whether that's gonna be the final title is not yet confirmed. Luckily, it'll be helmed by series creator, Vince Gilligan , so we can rest easy knowing the project is in good hands.

Ball returns to high school
When he left Chino Hills High School past year to play in Europe, he was already ranked as the No. 7 recruit in the Class of 2019. LaMelo boarded a cross-Atlantic flight back to LA on Monday and is expected to start at Spire in the coming days.

MI voters to decide on recreational marijuana, anti-gerrymandering, voting options
In Missouri, voters will be asked to chose between three separate proposals legalizing medical marijuana to varying degrees. At present, recreational marijuana use is legal in nine states, as well as Washington, D.C.

Florida Votes To Restore Voting Rights To 1.4 Million Former Felons
One estimate says that 10 percent of all Floridians who are otherwise eligible to vote have been disenfranchised by the law. The Florida constitution, with Jim Crow-era roots, barred people from voting even after having completed their sentences.

Sergio AGUERO scores 150th Premier League goal for Manchester City
They're still yet to win a Premier League title and plenty believe the wait is going to continue at least one more season. Social media was full of love for Aguero and what he has meant to the Premier League since his arrival in Manchester.

Falcons run over Redskins to even record
During his team's 38-14 blowout loss to the Falcons, the Redskins were flagged for 10 penalties, resulting in 147 yards lost. Lauvao injured his left knee on the third play of the game, was taken off the sideline in a wheelchair and did not return.

Sainsbury deflection gives Spurs Champions League lifeline
He said: "It won't be an easy game, it is a must-win for Spurs but if we want to do something as well we have to win as well". The Belgium midfielder suffered an ankle injury in the 3-2 win at Wolves on Saturday and is awaiting the results of a scan.

United States voters give verdict on Trump as control of Congress at stake
Fox News can now project that the Democratic Party will retake control of the United States House of Representatives. Trump was spending Election Day at the White House and tweeting support for Republicans in the toughest races.

Firebrand Marsha Blackburn retains Tennessee Senate seat for GOP
House in 2002, Blackburn styles herself as a "hardcore, card-carrying Tennessee conservative" ready to fight for Trump's agenda. Bredesen angered many Democrats when he came out in support of Brett Kavanaugh's battle against sexual assault accuser Dr.

Carolina's defense gets job done in setting tone for 6-2 Panthers
Despite their success, Rivera cautioned that the team's offense doesn't exclusively revolve around those two electric players. In some ways, he has been overshadowed by 2018 first-round pick DJ Moore and 2017 second-round pick Curtis Samuel .

Yoga studio owner ‘shattered and horrified’ by shooting
Beierle was also charged with battery in 2012 for grabbing women's buttocks in a Florida State University campus dining hall. Florida State University president John Thrasher expressed condolences to the victims' families in a statement.

Not Real Madrid, Arsene Wenger likely to return coaching with AC Milan
Wenger had previously indicated that he would be taking time off from coaching until the beginning of next year. The 69-year-old has been out of work since leaving Arsenal in the summer after 22 years at the club.