Differences with RBI Governor is media creation: FM

Union Finance Minister P Chidambaram dismissed on Tuesday as 'media creation' reported differences between Government and Reserve Bank of India Governor D Subbarao.

"I have already explained about the. . . media created differences between Government and RBI (Governor)", he said when asked if "his problem with RBI Governor is because he did not oblige with rate cut".

"You asked the question again. After two days, I will give the same answer", he told reporters after a meeting with South Zone Chief Ministers and top officials of public sector banks and financial institutions.

A day after Chidambaram asked RBI to speed up the process of issuing new bank licences, Subbarao said last Friday that it would not be possible without fulfilling the enabling conditions for the same.

After the RBI's hawkish stance on the rate cut recently, the Minister had also remarked that if the government has to walk alone to face the challenge on the growth path, it would do so.

Image: P Chidambaram