The Indian government has denied that it does not respect the independence and autonomy of the Reserve Bank of India which many newspaper reports have suggested. Finance Ministry today responded to the reports.
This controversy came into existence after it was revealed that it was Prime Minister Modi and the Finance Ministry which were the main brains behind the demonetization bid that many critics say have not yielded the desired results.
In a statement the Finance Ministry said:
There has been a report in sections of the Press that some unions have alleged infringement of the autonomy of the Reserve Bank of India. It is categorically stated that the Government fully respects the independence and autonomy of the Reserve Bank of India. Consultations between the Government and the RBI are undertaken on various matters of public importance wherever such consultation is mandated by law or has evolved as a practice. Consultations mandated by law or as evolved by practice should not be taken as infringement of autonomy of RBI.
The BJP is flying high as it has been tasting success across different states after the demonetization which it has taken as the people’s blessing for the step. Finance Ministry is led by senior BJP leader Arun Jaitley.