This has been pointed out by former RBI governor and veteran policymaker C Rangarajan, who has also backed “a spirit of dialogue and accommodation” that must prevail between the two entities.
“As the developments in 2018 and 2019 have shown, the pressure of the government on the RBI can come on issues unrelated to monetary policy or even regulation,” Rangarajan, who served as the central bank’s governor from 1992-1997, says in his latest book ‘Forks In The Road: My Days at RBI and Beyond’.
The government and the RBI were engaged in a bitter spat during this period, which ultimately led to the sudden resignation of the then governor Urjit Patel.
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