Govt rolls back proposals to set up new public debt management agency

The government on Thursday withdrew proposals to set up an independent public debt management agency and strip the central bank of authority to regulate government bonds.

Finance Minister Arun Jaitley, ahead of a vote in the Lok Sabha, said the government would instead consult the Reserve Bank of India (RBI) and come out with a detailed roadmap for a new debt management agency.

Jaitley had proposed to set up a debt agency when he unveiled the annual budget in February, but it had become a source of friction between the RBI and the finance ministry.

(Reuters)