With autonomy of the central bank once again in debate, here is how the government clarified on its position.
In a press release, the government said that the autonomy of the Central Bank, within the framework of the RBI Act, is an essential and accepted governance requirement.
Governments in India have nurtured and respected this.
Both the Government and the Central Bank, in their functioning, have to be guided by public interest and the requirements of the Indian economy.
For the purpose, extensive consultations on several issues take place between the Government and the RBI from time to time.
This is equally true of all other regulators. Government of India has never made public the subject matter of those consultations.
Only the final decisions taken are communicated. The Government, through these consultations, places its assessment on issues and suggests possible solutions.
The Government will continue to do so.>