Government says consultations on with RBI, remains mum on Section 7

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Neither denying nor accepting, the Ministry of Finance has issued a statement saying that extensive consultations on several issues take place between the government and the RBI and only final decisions are communicated.”Both the government and the central bank, in their functioning, have to be guided by public interest and the requirements of the Indian economy. For the purpose, extensive consultations take place between the government and the RBI from time to time. This is equally true of all other regulators,” Ministry of Finance said in a statement issued today.The ministry also said in the statement that the government has never made public the subject matter of those consultations and only the final decisions taken are communicated.However, sources confirmed to India Today TV that Section 7 of the RBI Act has been invoked by the government after the letter was sent to the RBI last week.Meanwhile, media reports suggest that Urjit Patel is considering resigning as the RBI governor.Also Read | Govt invokes never-used-before Section 7 to make RBI fall in lineAlso Read | What is section 7 of the RBI Act?Also Read | Why RBI and government are fighting
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