RBI governor Urjit Patel may consider resigning

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

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. For the goal, extensive consultations on several issues take place between the government and the RBI from time to time.

It reads: "The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest".

But it was unclear if it had used powers for the first time under the RBI Act to give the bank instructions. The Economic Times also reported on Wednesday that Gurmurthy had written a letter to Patel this week complaining about the nature of Viral Acharya's speech last Friday.

"Still it does sound like the finance ministry is trying to dial down the temperature".

Former Finance Minister P Chidambaram tweeted, "If, as reported, Government has invoked Section 7 of the RBI Act and issued unprecedented "directions" to the RBI, I am afraid there will be more bad news today". At 1.48 pm, the rupee pared losses to 0.38% to 73.96 a dollar.

The 10-year gilt yield stood at 7.8878% against its previous close of 7.831%.

More news: Megyn Kelly and NBC News Commence Exit Negotiations

"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.

Investors are anxious that a prolonged row between the government and the RBI could impact decision making at a time when India's financial markets have been hit hard by a series of debt defaults by one of the largest infrastructure funding companies.

NBFCs and Housing Finance Companies (HFCs) are suffering from asset-liability mismatches (ALM), CII noted adding that in a worst-case scenario, this could lead to a run on mutual funds and defaults in the NBFC sector. As a outcome, even the suggestion is a reflection of how bad Centre-RBI ties are.

"If RBI's top brass exits, there is a likelihood of instability that will be perceived, and that can have an impact on the economy and the market at large".

CII noted that RBI must work out further credit lines to provide sufficient liquidity as otherwise a severe credit crunch will dent consumer demand and growth of Indian economy. Giving control of the Reserve Bank of India to its Board of Directors effectively gives this control to thel government.

Finance Minister Arun Jaitley, meanwhile, has blamed the RBI's inability in identifying the problem of NPAs in Indian banks and lack of timely measures for the current crisis-like situation in the banking sector.

Related News:

  • Nine children reported dead at New Jersey facility after contracting virus

    Nine children reported dead at New Jersey facility after contracting virus

    The individuals associated with the outbreak became ill between September 26 and October 22, the Health Department said. The department said it is an active outbreak investigation and lab tests could confirm additional cases.
    Henderson, Keita to miss visit of Red Star

    Henderson, Keita to miss visit of Red Star

    Klopp's side welcome Red Star Belgrade to Anfield tomorrow (8pm) as they continue their Champions League campaign. Obviously we have things to improve up front and also at the back.
    Early Voting Numbers Are High In NC

    Early Voting Numbers Are High In NC

    By the end of the first week of early voting, almost a third of the votes were in, according to Elections Department statistics. Starting Monday, however, permanent polling locations in wards across the state opened up for the election's home stretch.
  • Germany's Angela Merkel prepares exit plan after party's poor election showing

    At the weekend, the CDU performed poorly in the elections in the central German state of Hesse. The dismal performance poured further scorn over Merkel's authority as a leader of the CDU.
    Cleveland Cavaliers Tickets Are Going for an Absurdly Low Price

    Cleveland Cavaliers Tickets Are Going for an Absurdly Low Price

    Kevin Love (Out - Foot Soreness): The Cavs have listed Love as OUT for Thursday's game (Oct. 25) against the Pistons . The Pistons have built a 4-0 record behind a free-flowing offense featuring Blake Griffin and some good fortune.
    At least 17 dead, dozens missing in Dead Sea floods

    At least 17 dead, dozens missing in Dead Sea floods

    With some of those rescued in critical condition and more people still missing, the death toll was expected to rise. Prime Minister Omar Razzaz is now overseeing part of the rescue operation and visiting the injured.
  • Indonesia's Lion Air has lost contact with airplane

    Indonesia's Lion Air has lost contact with airplane

    The pilot of a Lion Air flight that crashed into the sea on Monday morning was Indian national Bhavye Suneja , reported PTI. The transport ministry said crisis centres have been set up Pangkal Pinang's airport and Jakarta's Soekarno-Hatta airport.
    Trump cites 2005 Obama remarks to support immigration policy

    Trump cites 2005 Obama remarks to support immigration policy

    At a rally in Las Vegas, former President Barack Obama said he deserves some credit for the "economic miracles" that President Trump is bragging about.
    Red Sox have already won the World Series according to Google

    Red Sox have already won the World Series according to Google

    In Wednesday's Game 2, he provided the game-winning, two-run single in the fifth inning to give Boston a 4-2 lead. Martinez has an ankle injury, and manager Alex Cora doesn't know if he'll be able to suit up for Game 3.
  • Nintendo Switch Console Sales Reach 21.74 Million Units Worldwide

    Nintendo Switch Console Sales Reach 21.74 Million Units Worldwide

    Traditionally, the final quarter of the calendar year accounts for a large portion of video game and video game hardware sales. In the last quarter, revenue grew to $1.96 billion compared to $1.95 billion for the same period a year ago .
    Cardi B Is Scared Kulture Will Forget Her!

    Cardi B Is Scared Kulture Will Forget Her!

    I made a mistake and I wish that I could go back in time and work with Nicki instead of Iggy". "Yeah, that came to me first". Cardi B has threatened to sue Nicki Minaj for "defamation of character".
    May says 95% of Brexit deal agreed with EU

    May says 95% of Brexit deal agreed with EU

    But senior Brexiteer Chris Grayling called for calm, warning of the danger of Britain leaving the European Union without a deal. Well Mark... she asked lawmakers on Monday for patience while the final stages of a Brexit deal are being worked out.


Most liked

Michael Moore Shares Footage of Serial Bomb Suspect Cut From Fahrenheit 11/9
Trump's supporters have accused Democrats of unfairly suggesting the president was to blame for the bomb scares . His first arrest in the state was at age 29 for larceny.

Saudi refuses to extradite Khashoggi slay suspects
Khashoggi, a self-exiled, opposition Saudi journalist, was last seen on October 2 entering Saudi Arabia's consulate in Istanbul . Saudi officials have also said he was accidentally killed in a botched security operation to return him to the kingdom.

Manchester United team to play Everton appears to have been leaked
This has made Cesc Fabregas start thinking about his future, he is 31 and still has at least 2 more years to play active football.

How To Livestream This Week's Apple Event
Since it's USB-C, there's a chance that it could also support fast charging via a compatible USB-C PD power adapter. Apple already introduced new MacBook Pros but the rest of its macOS product line hasn't seen a refresh in a while.

How to Watch the OnePlus 6T Launch Event Without Actually Being There
According to the leaked specifications sheet, OnePlus 6T carries a number of key improvements over the OnePlus 6 . f/1.7 aperture. It could launch in two memory configurations: 6GB RAM + 128GB internal storage and 8GB RAM + 128GB internal storage.

Why you can not afford to miss Sunday’s El Clasico
A win will ease the pressure off the manager's back and the fans will have the first bragging rights at their oppositions. Sunday's Clásico will be Courtois' 13 game against Barça, the team that has tormented him most during his career .

Israel strikes 80 sites across Gaza
Health officials in Gaza said nine Palestinians were wounded in one of the Israeli strikes and a hospital was badly damaged. Hamas officials denied a deal had been struck but confirmed to AFP that progress was being made.

Worried about Trump iPhone eavesdroppers? China recommends a Huawei
But aides say the voluble president, who has been pressured into using his secure White House landline more often these days, has still refused to give up his iPhones.

POWERBALL FEVER: See winning numbers for Saturday's $750 million jackpot
The second-largest ever is this past week's Mega Millions and the third-largest is a $758 million Powerball from August 2017. The ticketholder of the $1.5 billion Mega Millions jackpot in Simpsonville, South Carolina, has still not been identified.

Amazon Falls After Missing Sales Forecast (NASDAQ:AMZN)
After falling as low $1028.77, Shares of Alphabet were down about 3 percent to $1,071.01 after hours from their close at $1103.59. Amazon reported standout third-quarter earnings Thursday, but revenue and revenue guidance disappointed.

Virat Surpasses Sachin to Become Fastest to Score 10,000 ODI Runs
On a flat deck in Guwahati, Indian bowlers did not fare well but the top order took the game away from their rivals in style. Kohli, who will turn 30 next month, was dropped on 44 by West Indies captain Jason Holder off debutant seamer Obed McCoy.

'I'm not satisfied' with accounts of Khashoggi death
British Prime Minister Theresa May said its Saudi arms sales were "under review", a stance similar to that expressed by Australia. Human Rights Watch says Jamal Khashoggi's son has left Saudi Arabia and is on his way to the United States.

Mourinho "not confident" that De Gea will renew contract
With United set to face Everton on Sunday afternoon, Jose Mourinho has been talking about the struggles of his number 7.

Inflammatory breast cancer hides until it reaches Stage 3 level
BMT has committed to making a $5,000 donation to the Abramson Cancer Center at the University of Pennsylvania in Philadelphia. Breast Cancer survivor Brandy Williamson said, "Nobody can get rid of cancer if we don't do some research".

I just want to say thank you to Jurgen Klopp
However, he is now up to six for the new season as another neat touch from Shaqiri set up Salah to give Liverpool the cushion of a two-goal lead just before half-time.