Government vs RBI : Urjit Patel Met Prime Minister Narendra Modi, RBI Board Meeting On November 19

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Amidst the  on- going tension between the RBI and the government, according to various media reports , RBI governor Urjit Patel had a meet with Prime Minister Narendra Modi reportedly on November 9 to find out ways to ease the rift.

According to reports, Patel was in the national capital on Friday and met senior officials in the Prime Minister’s Office.

The meetings took place as central bank and the finance ministry were not on the same page on hot of issues  ranging from appropriate size of reserves that RBI must maintain to ease of lending norms to step up growth in an election year.

Tensions between the RBI and the government have escalated recently, with the finance ministry initiating discussion under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor.

All eyes will be  now on the  RBI’s crucial Board meeting on November 19. Where the  face- off with the government are likely to be discussed in detail. And one expects a clear picture to emerge only after the board meeting.