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A day after the vice governor of the Indian Central Bank, Viral Acharya, warned that governments that do not respect the independence of their central bank would suffer the wrath of financial markets, the Minister of Finance of Union, Arun Jaitley, said regulators needed to have a wide range of high quality measures. consultations with all stakeholders.
"I think that, for any regulatory mechanism, the consultation of stakeholders must be of very high quality, which will probably lead to a re-examination of traditional ideas and opinions. And that is why (when) several regulators now publish their approach notes or convention drafts, they hold auditions, meet with individuals, meet with stakeholder groups and improve what is being said. ", Said Jaitley at an event organized by IDFC Bank on Saturday to celebrate his third birthday.
However, he made no direct or indirect reference to the RBI deputy governor's speech and his comments responded to specific questions asked by Rajiv Lall, Founding Executive Director and CEO of IDFC Bank. [19659004] ALSO READ: The NBFC's difficulties will weigh on the clues
Jaitley said it was thanks to constant consultations between various governments, regulators and stakeholders that India was evolving as a economy and that decisions were made as to the need to relax or relax any regulation. modified according to the situation on the ground. "Governments need to make themselves accessible to stakeholders. They can not remain indifferent, "he said.
At the AD Shroff commemorative conference in Mumbai on Friday, Acharya strongly argued for more independence for the Reserve Bank of India (RBI). Acharya said the central bank needed to have more powers to oversee public sector banks and maintain a strong balance sheet, and to have an adequate scope of regulatory enforcement. stated, was necessary to ensure greater financial and macroeconomic stability.
At Saturday's IDFC meeting, at Lall's request, Mr. Jaitley stated that elected governments should be held accountable only to voters and the media, but also to stakeholders and regulators.
ALSO READ: A changing economy needs dynamic regulation, says Arun Jaitley
With frequent elections, you are responsible to the people. You are also accountable to the various stakeholders because you have to listen to them and react accordingly. And it's actually a very useful interaction that emerges from these standards of accountability, "he said.
"This makes you wiser, it takes you beyond the realm of traditional theories, dogmatic opinions or even what is said in a file or in an expert article. This gives you the empirical proof of what is happening. So, if you meet the bankers, the companies, the others who are dealing with finance, money or currency, the empirical evidence is inherently stronger, "said Jaitley. [19659002] The last strong point between the Ministry of Finance and the RBI came as a result of a liquidity crisis in non-bank financial companies, even as public banks have more than 10 trillion badets
ALSO READ: Make sure the NBFC do not fail, said Arun Jaitley to the main organs of control of the finances
The Minister of Finance asked Friday the heads of the main banks of the sector public (PSB) to ensure that liquidity does not disperse further contagion in the NBFC sector.The RBI has repeatedly asked for more control over state-owned banks, including decisions regarding their positions. of direction
"A nation higher than any institution or any government"
Earlier in the day, the First Atal Bihari Vajpayee Memorial Lecture, Jaitley spoke of the persistent fiasco within of the Central Bureau of Investigations.
He asked whether the non-accountability of the institutions could be a reason for adventurist investigation and concealment of corruption.
Arun Jaitley
"India is a nation superior to any institution or government. Can non-liability be a mask for corruption? Can there be any reason for adventurist investigation or can it act, as in the case of another institution not responsible, for a motive? d & # 39; inaction? What does the nation do? This is a major challenge, "said Jaitley.
The Supreme Court had to intervene in the dispute between the director of CBI, Alok Verma, and the special director, Rakesh Asthana, both sent for leave of absence by the government opposition-led opposition parties have made this issue a political issue, claiming that Verma had been removed from office to prevent him from investigating the aircraft deal Dbadault Rafale.
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