Mumbai: Governor Urjit Patel has called a meeting of the bank’s board on November 19, indicating his readiness for settling the difference with the government.
The stand-off between the government and RBI began following some ‘non-official directors’ reportedly bating for weak banks.
Deputy Governor of RBI however didn’t take it too kindly when he said, “governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution.” The Hindu quoted him as saying.
The rift nearly spiraled into a full-blown crisis with reports of high profile resignation seeping in to the media.
Alongside, some reports said the government would invoke never-used-powers in public interest.