Rbi vs modi government: urjit patel to meet arun jaitley today at fsdc meeting

Other financial sector regulators will also be present at the meeting. Amidst the friction between the Reserve Bank of India and Modi government, RBI governor Urjit patel to come face to

face with union finance minister Arun Jaitley today at the Financial Stability and Development Council (FSDC) meeting.  Financial Stability and Development Council is a government body which

was first mooted by the Raghuram Rajan Committee in 2008. The meeting will be the first formal interaction between the FM and RBI governor since the rift between the two came out public. 

It is expected that at the FSDC meet, issues like governance of public sector banks, NPAs, cybersecurity issues in the banking system, crypto-currencies and the proposals of the Sumit Bose

Committee on measures to curb misselling of financial products and rationalising distribution incentives will be discussed.  Other financial sector regulators will also be present at the

meeting. There have been differences between the government and the RBI over regulation of state-owned banks and handling of non-performing loans, with the central bank repeatedly raising

concerns about lack of power to oversee PSU banks. Meanwhile, the government has maintained that RBI has sufficient powers to regulate both private and PSU banks. Meanwhile, former finance

minister Palaniappan Chidambaram had urge the government and the RBI to work behind closed doors to sort out the differences.  “I think the matter is serious enough and it will be best if

the RBI and the government don’t talk across each other through lectures -- we have had two already,” Chidambaram told reporters. “It might be better if the time-honored practice of the

finance minister and the governor of the RBI meeting often in private and talking issues.” After RBI deputy governor Viral Acharya fired the first salvo, the central bank's employees

union on Monday launched an attack against the central government. The power tussle has also taken a political colour with the Congress siding with RBI. In a press statement, All India

Reserve Bank's Employees Association (AIRBEA) said that "undermining the country's central bank is a recipe for disaster and the government must desist."