Autonomy of RBI essential, nurtured by govt: Finance Ministry
New Delhi, Oct 31 : Amid reports of its mounting tension with the RBI, the Finance Ministry Wednesday said the government has "nurtured and respected" autonomy of the central bank and has been holding extensive consultations with it on many issues.
"The autonomy for the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Government of India has nurtured and respected this," it said in a statement.
Both the government and RBI, in their functioning, have to be guided by public interest and the requirement of the Indian economy, it said. "For the purpose, extensive consultations on several issues take place between the government and the RBI from time to time."
However, the statement did not mention about the government citing the never-before-used power of issuing directions under the Act to RBI Governor to seek a resolution to differences with the central bank.
The government has sent at least three letters on different issues under Section 7 (1) of the Reserve Bank of India Act that gives it powers to issue any direction to the central bank governor on matters of public interest.
"The government of India has never made public the subject matter of those consultations. Only the final decisions taken are communicated," the statement said.
"The government, through these consultations, places its assessment on issues and suggests possible solutions. The government will continue to do so," it added.
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Illegally stored gas cylinders seized
Thane (PTI): Authorities have seized illegally stored 1,839 gas cylinders and seven vehicles worth over Rs 67 lakh in the Dombivli MIDC area of Thane district, officials said on Saturday.
A special vigilance team of the Mumbai Rationing Department detected an illegal storage of domestic and commercial LPG cylinders in Phase-2 of Dombivli (East).
Cylinders belonging to multiple gas agencies were found stockpiled in closed vehicles, unauthorised warehouses, and open sheds without mandatory permissions from the Explosives Department, Fire Department, or oil companies, according to an official release.
