Reserve Bank Governor Urjit Patel met Prime minister Narendra Modi last Friday, November 9, to resolve the contentious issues between the central bank and the government.
According to sources, the meeting was held to discuss the emerging differences between the RBI and government Patel. They said that following the meeting, the RBI may agree to some demands of the central government.
Amidst speculations of the incumbent governor retiring before the end of his three-year tenure, Patel met Modi in a private meeting in New Delhi.
The meeting is significant as the market and the banking system have been abuzz with the rift between the government and the RBI.
The meeting comes ahead of the central bank’s crucial board meeting that is scheduled to be held on November 19. According to reports, this board meeting will consider discussing the interim dividend and capital framework of the RBI.