Rupee Drops on Speculation of Worsening RBI-Government Tension

Govt Sends Letters to RBI Invoking Section 7 of RBI Act: Reports

The Economic Times said the government invoked powers under Section 7 of the RBI Act by sending several letters to Governor Urjit Patel in recent weeks on issues related to liquidity for non-banking finance firms, capital for weak banks and lending to SMEs.

This did not go down well with the Centre, who said that they were 'upset' that the RBI publicly spoke about the rift.

The FSDC is headed by the Finance Minister and comprises the RBI Governor, the SEBI Chairman, and heads of regulators such as PFRDA, IRDAI and the Chairman of the Insolvency and Bankruptcy Board. A statement from the government clarifying on the issue clearly acknowledges the need for RBI autonomy within the framework of RBI Act, by calling it is essential and accepted in an economy.

The statement further stated that, "Government of India has never made public the subject matter of those consultations".

Ireland boss Martin O'Neill pays tribute to 'incredible gentleman' Vichai Srivaddhanaprabha
Fans were seen laying down football scarves and shirts outside Leicester City's King Power stadium yesterday. Srivaddhanaprabha was known for arriving and leaving the stadium in his helicopter at home games.

Central banks around the world are facing heat from political leaders.

There have also been media reports that the government has invoked never-before-used powers under the RBI Act that allow it to issue directions to the central bank governor on matters of public interest.

"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", he said. "For the goal of extensive consultations on several issues take place between the government and the RBI from time to time". But in 2016, the central bank conducted a special asset quality review of all banks that determined there were $150 billion of non-performing loans, forcing the RBI to impose lending restrictions on some.

BJP slammed Rahul Gandhi for his criticism against Prime Minister Narendra Modi over the RBI-Centre rift, and said that it reflects Congress party's grounding, "which is fast eroding in national politics".

OnePlus 6T Wallpapers leaked ahead of official launch, Download Now
Level of specificity, we find the now well-known Snapdragon 845 with 8 Gb of RAM: what is the position of the next premium. The company will also be live streaming the event on its official website , YouTube channel and the Amazon India website.

Acharya's comments gave an indication that the central bank is pushing back hard against government pressure to relax its policies and reduce its powers ahead of a general election due by next May. For instance, a senior government official maintained that the provision only relates to the management of the central bank and the central government may not be empowered to issue directions to the RBI on policy-related matters.

Sources in the ministry of finance told Firstpost that Section 7 of the RBI Act has not been invoked.

Unlike in the past, all four RBI deputy governors attended the FSDC meeting along with Dr. Patel.

This temporarily takes away the RBI's independence and autonomy.

Donald Trump blames media to inspiring pipebomber
CNN in a late-night article alleged that Trump has taken no responsibility for the tone of the political discourse. Trump said "any guy that can do a body slam - he's my guy". "But politicians happen to lie", he said.

Related news:

Hot News

isis-killer-beheading-video-story-top Klay Thompson hits 14 threes in single game, breaks National Basketball Association record
Oct 31, 2018 - 09:31
Tim Hardaway Jr . scored 24 points for the Knicks, who have dropped five in a row after a season-opening victory over Atlanta. With the gold headband on, Thompson missed his first 3-point attempt but he'd connect on the next one to tie Curry's record.

isis-killer-beheading-video-story-top The State of the 2018 Midterms
Oct 31, 2018 - 09:13
Trump is expected to do at least 10 rallies in the final stretch before Election Day, doubling up on rallies on many days. The political party numbers are broken down to: 1.29 million Republican voters and 1.23 million Democratic voters.

isis-killer-beheading-video-story-top 9th Child Dead From Flu-Like Adenovirus Outbreak at New Jersey Center
Oct 31, 2018 - 06:57
Both the staff at the facility as well as state authorities are continuous in the efforts to contain the spread of the virus. The ninth child became ill before October 22 and died on October 28, the New Jersey Department of Health said.

isis-killer-beheading-video-story-top OnePlus 6T launch: Specifications, features, 7 biggest takeaways
Oct 31, 2018 - 06:56
There are also more than 500 targeted optimizations made in this new version of OxygenOS to help make things smoother and faster. The studio light feature accentuates the colors and brightness levels whenever a human face is detected in the portrait mode.

isis-killer-beheading-video-story-top US Economy Grows By 3.5% In Third Quarter
Oct 30, 2018 - 12:32
The US Commerce Department said strong consumer and government spending helped to bolster the economy. That's still strong, though lower than the 4.2% clip the economy grew during the second quarter.

isis-killer-beheading-video-story-top CNN Receives Another Suspicious Package As Trump Attacks the Press
Oct 30, 2018 - 07:14
As a result of Wednesday's package, all mail destined for CNN's U.S. offices is now being screened first at off-site facilities. After Sayoc's arrest Friday, authorities warned that more packages might still be circulating through the mail system.

isis-killer-beheading-video-story-top Cleveland Browns Fire Head Coach Hue Jackson
Oct 30, 2018 - 06:11
Jackson was hired in 2016 by the Haslams, whose six years ownership have been marked by almost constant change and bad football. First Hue Jackson, now Todd Haley. "I know that it is something that we are not going to tolerate moving forward".

isis-killer-beheading-video-story-top Student Dies After Being Shot By Another At School In North Carolina
Oct 30, 2018 - 05:15
Wilcox said an investigation would take place and the school would try to improve the situation for the future. Butler High School in Matthews, a suburb southeast of Charlotte, was quickly taken into custody, police said .

isis-killer-beheading-video-story-top Angela Merkel on the spot after painful regional vote
Oct 30, 2018 - 05:11
German DPA agency is reporting that Merkel "plans to continue on as chancellor". "Merkel is resigning from the wrong post". Mr Merz is among the many conservative men who have seen their political fortunes dwindle under Ms Merkel.

isis-killer-beheading-video-story-top Cruz Lead Shrinks To +5 With One Week To Go
Oct 30, 2018 - 03:46
The poll's release comes as a record number of Texans continue to cast ballots during the state's early voting period. Republicans, meanwhile, backed Cruz by 96 percent to 3 percent, according to the Q poll.

isis-killer-beheading-video-story-top Afghanistan: Kandahar Votes After Week-long Delay Due to Violence
Oct 29, 2018 - 16:49
One police officer was killed and six others, including election workers and policemen, were wounded in the blast. The IEC is scheduled to release preliminary results on November 10.

isis-killer-beheading-video-story-top Prince Harry is just like us when travelling
Oct 29, 2018 - 14:48
That evening, at 7pm, they will reconnect with the prime minister at a reception held at the Auckland War Memorial Museum. Prince Harry , Meghan Markle's next stop after the craft fair was the Tupou College in Toloa. "We all deeply thank you".

isis-killer-beheading-video-story-top Will Kevin De Bruyne play?
Oct 29, 2018 - 14:42
City crushed Burnley 5-0 last weekend and followed up with a 3-0 win at Shakhtar Donetsk and look in ominous form. You will only really know if you are good enough or not when you fight with the same conditions.

isis-killer-beheading-video-story-top Dodgers Beat Red Sox, Eventually, in Longest-Ever World Series Game
Oct 28, 2018 - 09:13
Maeda might have produced the biggest single inning from LA's bullpen in the 15th after Eduardo Nunez singled and Bradley walked. After 18 innings , and clocking in at seven-hours and 20 minutes, . the LA Dodgers finally beat the Boston Red Sox 3-2.in Game 3.

isis-killer-beheading-video-story-top David Warner walked walk-off after ‘hurtful’ sledge: Wife
Oct 28, 2018 - 09:10
Strangely, however, he did not fully leave the field of play which led to an array of confusion for the crowd and the opposition. Candice Warner confirmed that it was Hughes who directed the comments at her husband.