The autonomy for the Central Bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Governments in India have nurtured and respected this. Both the Government and the Central Bank, in their functioning, have to be guided by public interest and the requirements of the Indian economy. For the purpose, extensive consultations on several issues take place between the Government and the RBI from time to time. This is equally true of all other regulators. Government of India has never made public the subject matter of those consultations. Only the final decisions taken are communicated. The Government, through these consultations, places its assessment on issues and suggests possible solutions. The Government will continue to do so.

Central bank autonomy affirmed as essential within statutory framework, with confidential government bank consultations shaping final policy outcomes. Autonomy for the Central Bank within the statutory framework of the RBI Act is an essential governance requirement nurtured by governments; both Government and the Central Bank must act guided by public interest and economic needs. Extensive, confidential consultations occur between Government and the Reserve Bank on issues where the Government places assessments and suggests solutions, with only final decisions communicated publicly and such engagement to continue.