Reserve Bank in talks with govt over monetary policy framework

Reserve Bank of India (RBI) Governor Raghuram Rajan said on Thursday that the central bank was in discussions with the government over the country's monetary policy framework, calling the relationship between the two sides "cordial".

Rajan said the talks included setting objectives for the RBI, while adding that these talks were issues being worked out between the two sides and that they did not threaten the independence of the central bank.

"The truth is the government and the Reserve Bank enjoy a free, frank and cordial relationship. We discuss many things and we try and do what is in the best interest of the country," Rajan said at event involving students in the southern city of Hyderabad.

(Reuters)