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A speech last week by Viral Acharya, a deputy governor at RBI, made a textbook case for a central bank's functional autonomy. Nevertheless it appears to have set the cat among the pigeons as it came in the wake of open airing of differences with the government, particularly over RBI's regulatory remit over public sector banks (PSBs) and payments and settlement systems. Functional autonomy for RBI has found support among successive governments because it's irrefutable that...
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