Finance Minister Arun Jaitley said the Central respects autonomy and independence of the RBI and raising credit and liquidity issues do not infringe on the central bank’s autonomy.
“If the sovereign government is pointing out that there are credit and liquidity issues in the country, how can it be infringing the autonomy,” he said.
The statement came days after Urjit Patel resigned as Governor of Reserve Bank of India amid talk of a face-off with the government over autonomy and independence of the central bank.
“The government respects autonomy and independence of central bank,” Jaitley said, adding that he hopes “things will work out well in future”.