Reserve Bank of India threatened by government’s economic policies

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In the 15 years or so since the Reserve Bank of India (RBI) shook off its former role as a bureau for monetising government debt, India’s central bank has grown enormously in stature. As a ‘full-service central bank’, in the words of RBI governor Duvvuri Subbarao, it has taken on a very broad remit in economic policy and financial markets, and appears to have performed well. During much of this period, the RBI was helped by strong growth in the Indian economy, which disguised underlying

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