INSUBCONTINENT EXCLUSIVE:
Urjit Patel met senior officials in the Prime Minister's Office on Friday, report says.NEW DELHI: RBI Governor Urjit Patel is believed to
have met Prime Minister Narendra Modi last week in a bid to work out a solution on contentious issues that have been flash point between the
central bank and the government during the last few weeks
Sources said Patel was in the national capital on Friday and met senior officials in the Prime Minister's Office (PMO)
The meetings, which some said also included with the Prime Minister, came amid a face-off between the central bank and the finance ministry
not immediately clear if an agreement has been worked out to ease liquidity situation for non-banking finance companies (NBFCs) and the RBI
parting with its substantial part of its surplus.Tensions between the RBI and the government have escalated recently, with the Finance
Ministry initiating discussion under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the
RBI Governor.RBI Deputy Governor Viral Acharya had in a speech last month talked about the independence of the central bank, arguing that
the risk capital required by the central bank while taking into account different risks.The Reserve Bank of India (RBI) has a massive Rs
alignment of capital adequacy norms with those in advanced countries and some relaxation in the Prompt Corrective Action framework, sources
said, adding more measures to enhance lending to MSMEs and NBFCs may also be discussed.(Except for the headline, this story has not been
edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
