Tuesday, November 20, 2012

Differences with RBI chief, a media creation: Chidambaram

Union Finance Minister P. Chidambaram today dismissed as “media creation” the reported differences between the Government and Reserve Bank of India Governor D. Subbarao.

“I have already explained about the... media created differences between Government and RBI (Governor),” he said when asked if his problem with the RBI Governor is because he did not oblige with a rate cut.

“You asked the question again. After two days, I will give the same answer,” he told reporters after a meeting with South Zone Chief Ministers and top officials of public sector banks and financial institutions.

A day after Chidambaram asked the RBI to speed up the process of issuing new bank licences, Subbarao said last Friday that would not be possible till the enabling conditions were fulfilled.

After the RBI refused to cut rates at the latest Monetary Policy review, the Minister had said that if the government has to walk alone to face the challenges on the growth path, it would do so.

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