Business

Indian Government Set To Turn Up Heat On RBI Governor: Sources

Investors and traders warn that if Patel quits it will create uncertainty and undermine India’s already-weak financial markets. They have been hurt in recent weeks because of defaults by a major financing company (Photo: REUTERS/Danish Siddiqui/).

By: Radhakrishna N S

The Indian government intends to keep pressing demands for the country’s central bank to relax lending curbs and hand over surplus reserves even if it risks provoking a resignation by the bank’s governor, three sources familiar with the government’s thinking told Reuters. While there appeared to be a partial truce last week when the government said it respected the autonomy of the Reserve Bank of India (RBI), the sources said the government will turn up the heat at the bank’s central board of directors meeting on November 19. And RBI Governor Urjit Patel will be a key focus of the…

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