RBI Governor stresses need for autonomy of central bank

RBI Governor stresses need for autonomy of central bank-Tells House panel on finance that monetary policy must be bank’s exclusive domain

  • Reserve Bank of India Governor Urjit Patel batted for autonomy of the institution in strong terms in his deposition before the Parliamentary Panel on Finance.
  • Mr. Patel made three key points at the meeting.
  • First, Mr. Patel said, depositors’ interests were of primary importance for which autonomy was non-negotiable.
  • Second, monetary policy should be the exclusive domain of the RBI.
  • He also asserted that maintaining the central bank’s reserves was extremely essential to maintaining the country’s AAA rating.
  • Mr. Patel said it was “obligatory” to follow the Basel III norms for banking sector as per G20 commitments made by the government.
  • Mr. Patel also made a presentation about the state of economy, which he said was doing well.

The Hindu

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