Day 5 – Q 1.The Reserve Bank of India (RBI) plays an important role is imparting fiscal discipline in the government. However, in the past few years, the dynamics between the RBI and the government has become somewhat strained. What are the most significant points of divergence between the RBI and the government? Discuss. Do the prevalent institutional mechanism address these strains effectively? Critically comment.

1. The Reserve Bank of India (RBI) plays an important role is imparting fiscal discipline in the government. However, in the past few years, the dynamics between the RBI and the government has become somewhat strained. What are the most significant points of divergence between the RBI and the government? Discuss. Do the prevalent institutional mechanism address these strains effectively? Critically comment.