#RaghuramRajan says happy to let public debt management agency go to the government

Reserve Bank Governor Raghuram Rajan today said there was no reason for RBI to manage public debt and he would be happy if the debt management function goes to the government.

“…I don’t see any reason why RBI should continue doing the PDMA (Public Debt Management Agency) functions. I am happy to let it go to the government,” he said.

The RBI governor was replying to questions from students of Kashmir University’s Business School here.

Following the controversy over setting up of the PDMA and shifting of regulation of G-Secs from RBI to Sebi, the government withdrew the proposal from the Finance Bill and decided to draw a roadmap for transfer of debt management function from RBI to an independent agency.