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Economy

Modi and Reserve Bank of India bury the hatchet

Committee will be formed to look into central bank's capital reserves

Board members of the Reserve Bank of India held a nine-hour meeting on Monday.
Board members of the Reserve Bank of India held a nine-hour meeting on Monday.   © Reuters

MUMBAI -- The Reserve Bank of India has found common ground on key issues that have put the central bank and the government of Prime Minister Narendra Modi at loggerheads for the past few months.

While some issues such as the RBI's surplus reserves have been entrusted to an expert committee, the Reserve Bank has decided to take another look at some of its recent policies relating to lending restrictions at weak banks.

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