Between the increasing tension between them on the autonomy of monetary policymakers, India's Finance Minister and its central bank governor will meet on Tuesday in New Delhi.
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| India Central Bank Chief Set to Meet Jaitley Amid Growing Rift |
Finance Minister Arun Jaitley will preside over a meeting of the Financial Stability and Development Council, which is ready to present Governor Urjit Patel. It comes a few days after the clear speech warning of the government's risks on the freedom of the Central Bank's Deputy Governor Viral Acharya.
India Central Bank Chief is ready to meet Jaitley between rising Rift
Tension forced the former finance minister Palaniappan Chidambaram to work behind the closed doors to remove the differences with the government and the Reserve Bank of India.
Chidambaram told reporters, "I think the matter is very serious and if the RBI and the government do not talk to each other through lecture, then it will be best- we already have two." "It may be better than the meeting of the governor and finance minister of time-honored practice often meets in person and talking issues."
The Financial Stability Committee comes at a time when a systemic shadow lender fails on its debt payment system, which increases the risk of getting infected and is a long shadow casting on consumption and development in Asia's third-largest economy. The struggling banking sector of India, which is one of the most stressed asset ratios in major economies, will also be discussed.
India Central Bank Chief is ready to meet Jaitley between rising Rift
On Friday, Acharya's speech demanded more powers for the central bank to regulate the state government lenders as it wants to clear the country's banking system.
The government has not officially responded to comments. But earlier this year, Jaitley said that politicians have to blame wrongly for any wrongdoing, while supervisors become relatively easy.
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