RBI governor can not defy Finance minister: Former PM

New Delhi: The dynamic tussle between Narendra Modi-led ruling government and RBI on the autonomy of the central bank seems never ending with some supporting the autonomy of central bank which is free from political influence or ruling government while the Modi government wants to bring the bank under its clutches.

Former PM Man Mohan Singh reacting to the heated spat between the duo said that the RBI governor is mandated to follow Finance Minister and can not defy him unless he wants to step down from this position.

Singh’s comments come at a moment when RBI is fighting to stay autonomous, TOI reports.

Singh recalling his tenure at the central bank, said: “There is always give and take. I had to take the government into confidence. The governor of the Reserve Bank is not superior to the finance minister. And if the finance minister insists, I don’t see that the governor can refuse, unless he is willing to give up his job.”

He says there were situations which brought him in conflict with the government but he always maintained that the government can always overrule his given RBI’s view.