Taking away bonds regulation from RBI may hamper market: Rajan

Tags: Banking
Reserve Bank of India (RBI) governor Raghuram Rajan said on Tuesday he was not in favour of taking regulation of bond markets away from the central bank as the move may hamper development of the market.

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.

EDITORIAL OF THE DAY

  • The TPP pullout can alter global trade and India needs to watch

    Global trade will never be the same after President Donald Trump withdrew US from the 12-member Asia Pacific Rim nations conglomeration popularly know

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Disequilibrium: The cleansing & the yearning

As Twitter trolls went about their ugly business against Zaira ...

Rajgopal Nidamboor

Of body, brain and placebo effect

While most theories on human nature were based on conscious ...

Kuruvilla Pandikattu

Bias and prejudice exist in science too

Religion has caused a lot of harm to humanity. ...