Urjit Patel meets PM Modi in government and RBI ‘pulls’

Urjit Patel meets PM Modi in government and RBI ‘pulls’
13 Nov

New Delhi: In the pull-out over various issues between the government and the Reserve Bank, it is believed that Governor Urjit Patel has met Prime Minister Narendra Modi last week. Sources said that on Friday, Patel was in Delhi and met several senior officials of the Prime Minister’s Office.
It is to be mentioned that the situation has remained a dispute between the government and central bank for the past few weeks. It is hoped that Patel’s meeting with Modi could be to find a solution to the ongoing pull-out with the government.
Sources informed that the Reserve Bank of India has indicated a special arrangement for lending to small and medium industries. But it has not been immediately evident that whether there is any consensus on whether the non-banking financial companies (NBFCs) have been able to simplify the liquidity situation and issue some of their surplus funds from the RBI.
It is notable that there has been a tense situation in recent times regarding the issue of autonomy between the government and the central bank. Due to this tension, the Finance Ministry has started discussions under Section 7 of the Reserve Bank Act. This section gives the government the right to direct the Reserve Bank Governor on issues of public interest.

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