New Delhi: Finance Minister Arun Jaitley has replied in negative to a question whether the government was not satisfied with the functioning of the Reserve Bank of India.
In a written reply to the Lok Sabha, the Minister quoted a report of International Monetary Fund (IMF) which said the supervision and regulation by the RBI was strong and improved in recent years.
“No, madam,” Jaitley said to a question whether the government is not satisfied about the functioning of the RBI.
The government and the RBI under the previous Governor Urjit Patel were at loggerheads on several issues, including over appropriate size of reserves which the central bank should hold.
There were also differences over the lending to the small and medium enterprises, and norms concerning supervisory action over public sector banks under Prompt Corrective Action (PCA) of the RBI.
The differences reached a flash point with Patel suddenly quitting the RBI on 10 December.