October 31, 2018 / 6:50 AM / 4 months ago

Finance ministry to shortly issue a statement on government-RBI rift

The Reserve Bank of India (RBI) Governor Urjit Patel attends a news conference after the bi-monthly monetary policy review in Mumbai, April 6, 2017. REUTERS/Shailesh Andrade/Files

NEW DELHI (Reuters) - The government will soon issue a statement to address the growing differences between the finance ministry and the country’s central bank, Economic Affairs Secretary Subhash Chandra Garg said on Wednesday.

Earlier in the day, television channels reported that Reserve Bank of India Governor Urjit Patel may consider resigning from his post given a breakdown in relations with the government, sparking a sell-off in the rupee and government bonds.

The government has invoked never-before-used powers under the RBI Act that allow it to issue directions to the central bank governor on matters of public interest, the Economic Times newspaper reported on Wednesday.

Reporting by Manoj Kumar; Edited by Martin Howell

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