As an autonomous institution, Jaitley respects the RBI for its autonomy. But, he maintains that during the consultation process one is entitled to free and frank expression.
File photo of Union Finance Minister Arun Jaitley. (PTI)
“You are making the ‘so-called’ autonomous institution to realise (the distress) and act on it,” said Jaitley.
“We had diverse viewpoints and that’s not something for the first time which has happened. Governments in the last 70 years on several occasions have had viewpoints which were differing from the central bank itself,” added Jaitley.
As an autonomous institution, Jaitley – clearing his position – respects the RBI for its autonomy. But, he maintains that during the consultation process one is entitled to free and frank expression.
Talking on monetary policy and the Urjit Patel episode, Jaitley said RBI and government act within the constraints of their domain. However, both bodies have always been in extensive consultations, despite conflicting, diverse viewpoints.
Former governor Urjit Patel Patel stepped down from his post on December 11 citing personal reasons. His resignation comes amid an unprecedented rift with the centre over matters related to the central bank’s independence.