Don’t mess with the Reserve Bank of India
Prime Minister Narendra Modi came into office promising 'maximum governance, minimum government'that's what both RBI and the banking sector need
The first repercussions of the impending departure of Raghuram Rajan from the Reserve Bank of India (RBI) could now be visible—and it looks like those who argued the independence of India’s central bank was under threat may have been right. Rajan declared last month that he would not be seeking the expected extension of his term—a move widely seen as being forced on him by the Narendra Modi-led government in New Delhi. The government appeared to be uncomfortable with its inability, under Rajan, to direct the central bank’s actions. The implications for RBI’s institutional stability and strength—and for the credibility of India as an investment destination—weren’t good.
Login to enjoy exclusive benefits!
- Unlocked premium articles
- Personalized news
- Market Watchlist
- Insightful Newsletters & more