Public Debt Management Agency News

RBI employee unions have urged MPs and state finance ministers to stop a proposed Public Debt Management Agency (PDMA), saying the move to withdraw the RBI`s powers to regulate government securities will cost the government heavily.

The Finance Ministry is seeking comments of other ministries on creation of a shell public debt management agency (PDMA), an interim arrangement before the launch of a full-fledged agency to manage government debt.

The government and the Reserve Bank have reached a consensus on the structure for the proposed Monetary Policy Committee and Public Debt Management Agency, said Finance Secretary Rajiv Mehrishi.

Government may push amendments to the RBI Act in the Winter Session of Parliament for setting up a public debt management agency and a monetary policy committee (MPC) that will decide on the key interest rate.

Asserting that Finance Minister Arun Jaitley is on the same page as him on creating a public debt management agency (PDMA), RBI Governor Raghuram Rajan on Tuesday said it would be unwise to move things away from the Reserve Bank without discussions and disrupt a smooth-functioning market for "hypothetical gains".

Ruling out any differences with the government over creation of a Public Debt Management Agency (PDMA), RBI Governor Raghuram Rajan on Thursday said the new body should be "suitably independent of influences".

The RBI and the Finance Ministry need to work in harmony, former Prime Minister Manmohan Singh said today, even as he stressed on the need to keep the central bank's autonomy intact.

Reportedly there are differences between RBI and Finance Ministry over PDMA plan.

Setting at rest the controversy with regard to regulation of government bonds for the time being, Finance Minister Arun Jaitley today dropped from the Finance Bill 2015 the proposal to set up a separate Public Debt Management Agency (PDMA), outside of the RBI's ambit.

Jaitley added that the government is in consultation with RBI to prepare a detailed road-map for setting up a separate debt management agency.

There are no differences with the government over setting up of an agency for raising public debt, RBI Deputy Governor S S Mundra said Friday.

Public Debt Management Agency (PDMA) should be independent of the government as well as the central bank for ensuring fiscal discipline, RBI Governor Raghuram Rajan said on Sunday.

Reserve Bank Governor Raghuram Rajan Wednesday said he is not worried about the proposed Public Debt Management Agency (PDMA) and possibility of the apex bank losing its powers after the new body comes into existence.