All eyes on meeting between finance minister and RBI chief, after this comment

two are said to hold a meeting on the issue of a financial stability body

After the rift that came out as indicated by the statement of RBI deputy governor Viral Acharya, the Finance Minister Arun Jaitley and RBI governor Urjit Patel are set to be face-to-face today.

The two are said to hold a meeting on the issue of a financial stability body.

The Deputy Governor of RBI Viral Acharya had stressed on the need to maintain autonomy for the central bank.

Minister Arun Jaitley will chair a meeting of the Financial Stability and Development Council that Urjit Patel is scheduled to attend as chief of the RBI or Reserve Bank of India.

The Finance Minister then in turn criticised RBI and accused it of failing to prevent bad loans.

The financial stability committee meets as the government tackles the aftermath of the IL&FS crisis.

Deputy RBI governor Viral Acharya’s speech had called for greater powers for the central bank to regulate state-run lenders.

Government officials have recently called for the RBI to relax its lending restrictions on some banks.

The Modi government has also been pushing RBI to part with some of its Rs. 3.6 trillion surplus to help bridge the fiscal deficit and finance its welfare programmes.

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