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Govt says to consult on RBI on new monetary policy panel

Sinha`s comments come days after the finance ministry published draft legislation that proposes to reduce the RBI`s influence in setting interest rates.

New Delhi: The government will consult the Reserve Bank of India (RBI) before taking a decision on the formation of a proposed interest rate-setting panel, Minister of State for Finance Jayant Sinha told Reuters on Monday.

Sinha`s comments come days after the finance ministry published draft legislation that proposes to reduce the RBI`s influence in setting interest rates.

Sinha, however, clarified the proposal doesn`t reflect New Delhi`s views. He added that the government, including Prime Minister Narendra Modi, believes the RBI is capable of taking independent decisions on monetary policy.