The government is concerned that the public outburst by RBI Deputy Governor Viral Acharya may have serious impact on the market, reported The Economic Times.

Share Market Live

NSE

According to the report, while the speech by Acharya has shed light to the mounting difference of opinion between the government and the RBI officials, it is unlikely to affect the tenure of the latter. Officials believe the episode will not lead to the resignation of RBI officials including Governor Urjit Patel, said the report.

“The only reason that the RBI Governor should step down is if there is a health issue,” an official was quoted as saying in the report.

Another official stated that the government is of the view that ‘its main task is to stabilise the economy and shield it from global headwinds. A section within the government is of the view that the public outburst made by the RBI official was unnecessary. “Such statement and bluster create panic in the market,” the official was quoted saying in the report.

The development comes after the deputy governor’s speech last week brought in to light the mounting differences between the centre and the central bank. The most recent conflict emerged as pressure is mounting on the bank to ease credit to small firms and relax lending norms from the part of non-official directors including S Gurumurthy of Swadeshi Jagran Manch.