Government says RBI independence 'essential'

New Delhi: A section of Indian media on Wednesday said RBI governor Urjit Patel might well quit following the “rift” with government, causing a downward effect in stocks and bonds.

The government immediately stepped in calming the investors affirming its belief in central bank autonomy.

TV channels CNBC-TV18 and ET Now reported Urjit Patel might resign citing unnamed sources. However, the RBI authorities refused to comment.

Further to it, some reports said the government would issue directions to the RBI governor invoking never-before-used powers in “public interest”.

Just as speculations started sending jitters, a government statement hours later said that RBI’s independence was “an essential and accepted governance requirement”.

Alongside, the government said it would have “extensive consultations” with RBI as regards assessments on issues and possible solutions.