We don’t have the confirm news but still, the sources are indicating that the Reserve Bank of India’s Governor Urjit Patel might resign from his post because of the weak relationship with the government. Also, RBI and the finance ministry declined to comment on the issue and the reports are coming that the “Ruppes condition” is affecting everything for now. You all should know that the first time in history the government has invoked never-before-used powers under the RBI Act.
In this power, they issued some directions to the central bank governor on matters of public interest. Also, the reports are coming that the government has sent letters to the RBI governor in recent weeks exercising powers under section 7 of the RBI Act on issues ranging from liquidity for non-bank finance companies. Also, the sources are saying that the capital requirements for weak banks and lending to small- and medium-sized companies are also ranged.
Some of you may know that under Section 7 says that the Central Government could give directions to the government time to time to the Bank. You all should know that the government gives directions to make things better for the public when the RBI fails. Also, this is a serious thing for the RBI as it looks like that they can’t control the whole drama. You all may already know that the Rupees are in lower of 10-year benchmark bond.
Now, today you all should know that the rupee fell to 73.99 to the dollar from 73.6750 on Tuesday. You all should know that the rupee was lowest with 74.04. Some of you may know that the Finance Minister Arun Jaitley blamed the central bank for failing to stop a lending spree during 2008-2014 that left banks with $150 billion of bad debt. Overall, this whole situation is going worst and RBI governor is going to resign from his position.
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