Former RBI Deputy Governor Mohan Discusses Patel Resignation

The video discusses the tensions between the Indian government and the Reserve Bank of India (RBI), leading to the resignation of Governor Urjit Patel. Key issues include the government's desire to access RBI's reserves and influence monetary policy. The video explores the implications for monetary policy and the need for the government to restore confidence in the RBI's independence and credibility.

What was the main reason for the tensions between the government and the RBI?

• Lack of communication

• Differences over monetary policy

• Disagreements on fiscal policy

• Unknown specific reasons

What was one of the government's demands from the RBI?

• To increase interest rates

• To change the currency design

• To access the RBI's excess reserves

• To decrease inflation

What role does the RBI play in the payment and settlement system?

• It provides financial support

• It manages foreign exchange

• It sets interest rates

• It is the primary regulator

What was the government's stance on public sector banks with non-performing assets?

• To be stricter

• To be more lenient

• To privatize them

• To merge them

How is the monetary policy committee structured?

• A mix of government and RBI officials

• A mix of independent members and RBI officials

• Entirely RBI-appointed

• Entirely government-appointed

What is crucial for the government to restore confidence in the RBI?

• Appointing a new finance minister

• Increasing the RBI's budget

• Acting responsibly and appointing a credible governor

• Reducing interest rates

How often has an RBI governor resigned due to differences with the government?

• Once

• Twice

• Three times

• Never