Govt-RBI consultation way forward, says Jaitley after Viral Acharya speech

The latest flashpoint between the finance ministry and the RBI occurred on the back of a liquidity crisis in NBFCs

A day after Reserve Bank of India Deputy Governor Viral Acharya cautioned that the governments that did not respect their central bank's independence would incur the wrath of financial markets, Union Finance Minister Arun Jaitley said regulators must have a wide range of high-quality consultations with all stakeholders. 

“I think, for any regulatory mechanism, stakeholder consultation has to be of a very high quality, which will probably lead to a revisiting of traditional thoughts and opinions. And that’s why, (when) several regulators now publish their approach papers or tentative drafts, they hold hearings, meet individuals, meet groups of stakeholders together