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Support for MSMEs was one among the contentious issues between RBI and the govt leading to the abrupt resignation of previous Governor Urjit Patel last month and the immediate appointment of his successor Shaktikanta Das.
Shaktikanta Das' bureaucratic links are expected to heal a rift between the government and the central bank that had widened sharply under his predecessor, Urjit Patel.
Coming back to the current turmoil, actually the resignation of Patel as RBI Governor has elicited sharp reactions from all quarters, so to say.
Das, a former secretary at India's department of economic affairs, was appointed governor for a period of three years.
The government and the RBI have been fighting for weeks over how much autonomy the RBI should have.
Succeeding an outspoken governor with 'rockstar' appeal, Patel was often considered reticent, rigid, uncommunicative.
RBI Governor Urjit Patel unexpectedly resigned Monday, bringing into prominence the role played by the central bank in the country's economy.
The resignation of the top official is being perceived as a huge setback to the central government
A majority of the 18-member board, now stacked with government nominees, intends to press for reduced curbs on lending and governance changes that would give the board more say.
The governor said the economy would get a boost from oil prices cooling off from four-year highs and asserted that the fundamentals were "robust".