Centre vs RBI: Arun Jaitley speaks up finally, makes this big statement on funds

Arun Jaitley, in an interview, now says that Centre does not need money from the Reserve Bank of India (RBI). However, he also said that Centre does not need the money for the next six months! (Image: Reuters)

"I don't need money in the next six months," Arun Jaitley told Times Now news channel telecast on Friday. (Image: Reuters)

Arun Jaitley rejected Opposition charges the government was seeking access to the bank's reserves to fund schemes ahead of the 2019 general election. Critics accuse the government of trying to undermine the central bank's authority, but Jaitley said his government respected the Reserve Bank's independence. (Image: Reuters)

"We respect the autonomy (of the RBI) but, at the same time, if some sectors are starved of liquidity or credit, we will flag those issues. We do so with the RBI," Arun Jaitley said. (Image: Reuters)

The Congress, India's main opposition party, has accused Prime Minister Narendra Modi`s government of eyeing the cash reserves held by the RBI. "Government is determined to 'capture' RBI in order to gain control over the reserves," P. Chidambaram, ex finance minister and a top Congress leader tweeted last week. (Image: Reuters)

PM Narendra Modi led government has been pushing for access to RBI`s surplus reserves prompting the central bank`s board to form an expert panel to look into whether its cash pool is adequate. (Image: Reuters)

The RBI board whose members include government nominees, in a meeting last week, advised the RBI to aid small businesses and give bankers more time to step up capital norms to encourage lending and stimulate the economy ahead of next year`s election. (Image: Reuters)