HDFC chairman Deepak Parekh has said a proposal under which Government will have majority presence on the Monetary Policy Committee (MPC) and doing away with the Governor's veto powers on rates is only a suggestion and so far doesn't amount to trimming the central bank's autonomy.
“I do not think the RBI's autonomy is reduced or is curtailed,” he told shareholders at the company's AGM here last evening.“There was an FSlRC (Financial Stability and legislative Reforms Commission) report which suggested something to the Government but the Finance Minister has come out openly saying this is a suggestion of the panel, and that the Govt has not taken any decision on that”.