Mumbai: Reserve Bank of India (RBI) Governor Raghuram Rajan on Wednesday said an independent debt management office would take at least a year or two to come into effect and that the apex bank was not worried about depletion of its regulatory powers.
The government has added some provisions in the Finance Bill which could take away some debt market-related regulation from the purview of the RBI.
Mr Rajan also said it was discussing with the government about increasing transparency of government's cash balances that are kept with the apex bank, but would also have to look into the government's concerns on revealing the numbers.
The RBI chief was speaking to analysts during a teleconference after cutting interest rates in a surprise move earlier on Wednesday.
While presenting the Budget, Finance Minister Arun Jaitley had said that following a report by the Financial Sector Legislative Reforms Commission, the government proposed to set up a Public Debt Management Agency (PDMA). (Read: PDMA may reduce RBI powers: analysts)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
