Delhi will not interfere in Mumbai's decisions: Sanjeev Sanyal

Interview with the finance ministry's principal economic advisor, Sanjeev Sanyal

The finance ministry’s principal economic advisor, Sanjeev Sanyal, played a key role in helping draft the new Ordinance to deal with nearly Rs 7 lakh crore worth of non-performing assets. In an exclusive interaction with Arup Roychoudhury, Sanyal said the RBI now has the tools to break the deadlock in terms of new lending activity. He also said Delhi (the central government) will in no way interfere in the decisions made in Mumbai (the RBI and banks). Edited excerpts:

How will the Banking Regulation Ordinance help in dealing with NPAs in the banking system? To what extent do you expect