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India’s prime minister proposes control over the central bank

Narendra Modi, India's prime minister, speaks during a news conference in Tokyo, Japan October 29, 2018. [Photo: Reuters]

MUMBAI/NEW DELHI - An incendiary speech by a top Reserve Bank of India (RBI) official last Friday blew the lid off an increasingly toxic dispute between the central bank and the government of Prime Minister Narendra Modi over monetary policy and who controls the institution’s reserves.

While historically there have been differences between the RBI and the nation’s governments, the extent of the rift and its public nature are unprecedented.

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