Taking away bonds regulation from RBI may hamper market: Rajan
Jun 17 2014 , Mumbai
However, Rajan said the RBI will not stand in the way if the government wanted to manage its own debt.
The government-appointed Financial Sector Legislative Reforms Commission (FSLRC) has recommended a slew of reforms to overhaul the sector.
"I don't believe the government suffers any less from conflicts of interest in debt management (unlike the views of the FSLRC), but the RBI could well carry out the government's instructions without any loss in welfare," Rajan said in a speech at an industry event.