Traders protest, say proposal by Indian govt curbs RBI independence

Mumbai

PROPOSALS from an Indian government panel reviewing monetary policy rattled markets on Friday, as foreign and domestic traders said that a move to increase the government's weight in decision-making could undermine the central bank's independence.

Under the panel's latest proposals, part of a broad and lengthy financial overhaul, the government would appoint four out of seven positions on a planned monetary policy committee. The Reserve Bank of India (RBI) would appoint the remaining three.