Govt-RBI Rift

NEW DELHI

In an apparent reference to the recent spat between the government and the Reserve Bank of India (RBI), Vice President M Venkaiah Naidu on Tuesday said there should be a regular dialogue between the two in the boardroom to arrive at solutions to address problems affecting the economy.

Referring to the issue of liquidity crunch, Naidu said the problem was because a few “black sheep” who have taken the system for a ride, are affecting the entire industry. “All of us have to introspect. Politicians… and the industry. A few people have taken the system for a ride and banks lent money left and right. The RBI was not doing things at that time and now they have tightened everything, so there are there are problems,” he said.

Naidu said these problems have to be analysed and understood. “The Reserve Bank of India and the government of India must have a regular continuous dialogue. There is no question of who is powerful or who is final. Final are the people and their interests. All these systems are created to facilitate people’s welfare.”