Autonomy 'essential requirement' for central bank: Finance Ministry

Amid a public spat between the RBI and the government, the Finance Ministry said on Wednesday that the autonomy for the central bank "is an essential and accepted governance requirement".

A brief statement said that both the government and the Reserve Bank of India (RBI) have to be guided by public interest and the requirements of the Indian economy.

"For the purpose, extensive consultations on several issues take place between the government and the RBI from time to time.

"Government has never made public the subject matter of those consultations. Only the final decisions taken are communicated. The government, through these consultations, places its assessment on issues and suggests possible solutions. The government will continue to do so."

(With inputs from agencies.)