Govt. upset with RBI, Employees back their boss

The explosive speech of Dr Viral Acharya, the deputy governor of RBI on Friday has upset the Centre.

He warned the government of “catastrophy” if it continued trying to undermine the central bank’s autonomy.

He said, rash moves could trigger a “crisis of confidence in capital markets”.

According to news, some official of PMO said “The government is very upset. It was not expected from the RBI,” “The government respects the autonomy and independence of the RBI but they must understand their responsibility,”

In a statement on Monday, the All India Reserve Bank Employees Association expressed said “undermining the country’s central bank was a recipe for disaster which the government must desist”.

“Let the two talk and sort out the issues instead of the government trying to ride roughshod over the RBI, what they are trying at the expense of the nation,” the statement read.

Government wants RBI to ease its lending norms for banks on which PCA has been imposed.

Another cause of rift is increase in interest rates while government wanted ot to be lowered.