.....Tension between North Block and RBI has been brewing for some time. Central bank officials point to the increasing intervention of the finance ministry in RBI activities in recent times. The government was also seen to be trying to micro-manage banks and issuing guidelines to them, which RBI thought came strictly under its purview. For example, the ministry recently issued norms for consortium lending by public sector banks. RBI has now decided to pursue the matter by writing to the government. A letter has been send to the government, detailing how the finance ministry had encroached upon the regulator's territory......
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