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India govt to consult on central bank on new monetary policy panel: Sinha

[NEW DELHI] The Indian government will consult the central bank before taking a decision on the formation of a proposed interest rate-setting panel, junior finance minister Jayant Sinha told Reuters on Monday.

Sinha's comments come days after the finance ministry published draft legislation that proposes to reduce the central bank'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 Reserve Bank of India (RBI) is capable of taking independent decisions on monetary policy.