Even as the Finance Ministry and the RBI have agreed on the need for a separate public debt management office, the central bank chief has cautioned against haste in overhauling financial regulation.
“There is a broader agenda of moving a whole lot of other things away from the RBI, and I think we are agreed that would not be wise without much deeper dialogue,” Governor Raghuram Rajan said.
These comments come after the Finance Minister Arun Jaitley, in April, put on hold a major overhaul of financial regulation that would have stripped the RBI’s authority to regulate the government bond market and manage public debt.