RBI wants to head public debt management agency

The Reserve Bank of India (RBI) has agreed with the government’s proposal to have a Public Debt Management Agency, but said it should be allowed to head the same. Finance minister Pranab Mukherjee had announced setting up of this agency in order to delink the central bank's role as a monetary authority from that of a government debt manager.According to official sources, in its comments on the draft legislation on the Public Debt Management Agency of India (PDMAI) given to the government, the RBI has endorsed the plan, subject to certain conditions. The government is hoping to introduce the relevant Bill in the Budget session. But unless the differences with RBI are bridged, it might take a while before the Bill is introduced in Parliament.

Source: Financial Express