Home » Money

RBI governor Urjit Patel may consider resigning

31 October, 2018, 11:57 | Author: Kristi Dunn
  • Open rift between RBI Modi govt as official warns of catastrophe

Section 7 of the RBI Act empowers the government to issue directions necessary for public interest to the RBI from time to time after consultation with the RBI governor.

The development comes amid a widening rift between the Modi government and Patel after the central bank's Deputy Governor Viral V Acharya in a speech on Friday, 26 October, warned that undermining autonomy and independence of RBI could be "potentially catastrophic". Another report in the Times of India said the government had mentioned the rule to the RBI in consultations, without invoking it.

What does Section 7 states? On Tuesday, Arun Jaitley responded, and held the central bank responsible for mounting bad loans, and said the Reserve Bank looked the other way when banks lent indiscriminately during 2008-14 to keep the economy going.

Voicing support for Patel, Bharatiya Janata Party (BJP) leader and Rajya Sabha MP Subramanian Swamy on Wednesday said if the governor decides to leave, the blame would fall on Jaitley. "Even the RBI board is being sought to be stuffed in a particular direction, which would prompt the discerning people to look askance and make it hard for RBI to frame policies", the union said in the letter.

Days after the rift between the Indian government and the Reserve Bank of India became public, some reports have suggested that the Governor of the federal bank, Urjit Patel, may resign.

Game 3 becomes longest postseason contest in Major League Baseball history
We're exhausted of watching you roll around in the dirt and be fine.' Then he hit me in the chin so I guess I deserved it. But I was feeling good about my at-bats. "He apologized to me, and I told him he had nothing to apologize for".

Officials in the Finance Ministry said three letters have been sent to the RBI, citing Section 7, without actually implementing it. The letter wanted RBI to carve out exemption for power companies under 12 February circular. "There have been talks with the RBI on these issues, but invoking Section 7 (1) is something that has not come up yet but we need to also ensure that industries are not killed", he added. For the goal, extensive consultations on several issues take place between the government and the RBI from time to time.

According to Livemint, the government is unlikely to invoke Section 7 of the Reserve Bank of India Act though it is using it as a threat to get the central bank to the negotiating table on a host of issues, including the more recent liquidity crisis that has impacted non-banking finance companies.

"Only the final decisions taken are communicated".

"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", he said. The government, through these consultations, places its assessment on issues and suggests possible solutions. "The Government will continue to do so", the Finance Ministry stated. "We appeal to all right-minded people and experts to speak out and persuade the government to amend, and let RBI do its jobs in an unfettered was as per statutes, mandates, practices".

Recommended:

  • Over the weekend: German election results putting pressure on Merkel

    Over the weekend: German election results putting pressure on Merkel

    The chancellor threw her weight behind her friend in Hesse and visited him four times on the campaign trail in recent weeks. But the CDU and ecologist Greens may lack sufficient support to renew their ruling alliance in the state.
    Asia stocks lose $5 trillion this year

    Asia stocks lose $5 trillion this year

    Dow futures erased losses on Wednesday after Boeing posted stronger-than-forecast quarterly earnings. Futures on the Nasdaq 100 and Dow Jones Industrial Average climbed 0.5% and 0.2% respectively.
    Google makes it easier to clear your recent Search activity

    Google makes it easier to clear your recent Search activity

    Google also made it a little easier to find privacy controls related to Search, like ad personalization settings (see below). The new controls seem to be in response to a growing trend with tech companies being pulled up on issues of privacy.
  • Brendan Rodgers confident Celtic can still qualify despite latest setback

    Brendan Rodgers confident Celtic can still qualify despite latest setback

    If we are going to have any aspiration of getting through the group, it's a game first and foremost we have to win. Rodgers said: "Jozo looks like he'll be struggling". 'I felt there was a lot of positives from the game.
    India's Virat Kohli fastest-ever to reach 10,000 ODI runs

    India's Virat Kohli fastest-ever to reach 10,000 ODI runs

    Kohli also scaled another magnificent record as he becomes the fastest batsman in terms of career-span to reach the 10,000- club. Ahead of the Vizag ODI, Kohli needed just 81 runs to break the master-blaster's record of 10000 runs in 259 innings.
    Liverpool 4-0 Red Star Belgrade: 3 things we learned

    Liverpool 4-0 Red Star Belgrade: 3 things we learned

    Mo Salah (8): he was great but could have scored more goals as he wasted some opportunities. In the end we won the game and that was the most important thing.
  • OnePlus 6T specifications leaked again ahead of launch

    OnePlus 6T specifications leaked again ahead of launch

    Since there is no visible rear-facing fingerprint reader, it will obviously be present inside the display of the OnePlus 6T . The OnePlus 6T , according to the rumour, comes with 128GB of inbuilt storage with no card slot for storage expansion.
    Machado's first World Series one to forget for Dodgers

    Machado's first World Series one to forget for Dodgers

    Kershaw, who now has the choice to opt out of his Dodgers contract, was left with yet another postseason disappointment. I think he excels in dealing with the media, which in Boston is a bigger job than some other places".
    Mattis Says Khashoggi Killing Could Destabilize Middle East

    Mattis Says Khashoggi Killing Could Destabilize Middle East

    He said he doesn't know the details of the investigation and called the media's coverage of the events "hysterical". Al-Jubeir claimed that Saudi authorities are trying to be transparent, but said the media makes it hard .
  • OnePlus 6T India Launch Set for Tonight

    OnePlus 6T India Launch Set for Tonight

    There aren't a lot of new features on the software side of things, barring new camera features and new navigation gestures. The company terms this feature as Screen Unlock and it claims it is the fastest in-screen fingerprint sensor in the world.
    References of the new iPad Pro design found in the iOS code

    References of the new iPad Pro design found in the iOS code

    All in all, Apple new strategy of upgrading gadgets in all of its product categories is a departure from the company's old ways. The A12 Bionic that's tucked inside the new iPhone Xs and XR is, without doubt, one of the fastest processors now on the market.
    Saudi van with 3 suitcases leaves Istanbul consulate

    Saudi van with 3 suitcases leaves Istanbul consulate

    Dozens of Western officials, bankers and executives boycotted a major investment conference in Riyadh this week. Mr Jubeir, however, insisted that US-Saudi relations would weather the fallout of Khashoggi's murder.


Popular

Records Show Governor Candidate Gillum Got ‘Hamilton’ Ticket From Undercover FBI Agent
By the time Gillum and DeSantis squared off in Broward County, nearly 1.4 million Floridians already had cast their ballots. On Thursday, Jackson said he had asked the ethics commission to include the Tampa trip in his complaint.

Afghan Residents Risk Their Lives To Vote In Delayed Kandahar Poll
Miller escaped unhurt, but US Brigadier General Jeffrey Smiley was among 13 people wounded in the shooting claimed by the Taliban. Ibrahimi said 111 candidates were vying for 11 seats in Parliament from southern Kandahar in Afghanistan's 249-seat chamber.

Magnitude 6.8 quake hits off Greece - USGS
The tremor - which had a magnitude of at least 6.4 - was felt as far away as Albania, Italy, Libya and Malta, reports Reuters. Power was lost in the island capital and main town, also called Zakynthos , but no major damage was reported there.

No Messi or Ronaldo but Clasico could still define season
A win will ease the pressure off the manager's back and the fans will have the first bragging rights at their oppositions. On the players' support, Lopetegui also said, "Obviously, I trust them and they trust me".

Netanyahu visits Oman, which has no diplomatic ties with Israel
Earlier this week, Palestinian President Mahmoud Abbas also visited the Persian Gulf Arab state for three days. His office added that it formed part of a policy of "deepening relations with the states of the region".

Delhi watches as Pro-China Mahinda Rajapaksa is PM
A delegation of the European Union said on Saturday that it was closely following the events in Sri Lanka. President followed his mandate under Article 42 (4) of Sri Lanka's Constitution to appoint a new PM.

Packages to Biden, De Niro seized, similar to earlier bombs
Trump was briefed on the latest suspicious packages found on Thursday, White House spokeswoman Sarah Sanders said. Speaking at an event in Austin, Texas, Mr Brennan called the spate of pipe bombs "an unfortunate turn of events".

CNN Retracts Story of Pipe Bomb Sent to White House
He further added, "Additionally, there was an envelope containing white powder, discovered as part of that original packaging". Later at a rally in Wisconsin, he urged unity. "We're all behaving very well and hopefully we can keep it that way, right?"

World's longest sea bridge opens as 34-mile, £14bn crossing is finished
Hong Kong's leader Carrie Lam had earlier spoken to thank Xi for attending in person, praising the bridge's "magnificence". China plans to create a Greater Bay Area which will include Hong Kong, Macau and nine other cities in southern China .

Pakistan to seek International Monetary Fund bailout despite Saudi Assistance: PM
Malik said the Muslim world greatly appreciated Prime Minister Imran Khan's firm stance on mitigation of corruption at any cost. Pakistan's key stock index jumped 3.8 percent on Wednesday and the rupee gained as much as 1 percent against the dollar.