India Is Seeking Closer Supervision of Its Central Bank
- Government is said to seek to empower central bank’s board
- The move doesn’t bode well for the rupee, says economist Erken
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India’s government has proposed changing rules that will enable closer supervision of its central bank, people with knowledge of the matter said, a move that may undermine investor confidence in the world’s fastest-growing major economy.
Prime Minister Narendra Modi’s administration has recommended that the board of the Reserve Bank of India draft regulations to enable setting up panels to oversee functions including financial stability, monetary-policy transmission and foreign-exchange management, the people said, asking not to be identified as the discussions are private.