Government respects independence, autonomy of RBI: Finance Ministry

Refuting allegations of interference by an RBI union, the finance ministry on Saturday said the government fully respects independence and autonomy of the Reserve Bank of India. “Consultations between the government and 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 ministry said in a statement.

The United Forum of Reserve Bank Officers and Employees in a letter to RBI Governor Urjit Patel had said employees were feeling “humiliated” by events since demonetisation and alleged that the government has been impinging on the central bank’s autonomy by appointing an official for currency coordination. “It is categorically stated that the government fully respects independence and autonomy of the Reserve Bank of India,” the finance ministry said.