RBI board meet: S Gurumurthy stirs debate by chiding central bank

Gurumurthy and other government nominees have been vocal about bank supervision, flow of credit to industry and easier financial conditions for India to overcome a crisis in its shadow banking sector

India’s monetary policy makers and government officials will meet Monday in a board meeting that promises to be anything but its usual dull affair.

Locked in a power struggle over how much capital the central bank needs and how tough its lending rules should be, a trained accountant parachuted into the Reserve Bank of India’s board by the government in August may be key to whether a compromise can be found or whether the already public spat turns even uglier.

Swaminathan Gurumurthy, a chartered accountant turned newspaper columnist, has set the tempo by chiding the monetary authority for being too tough in