Signaling truce with the government over who should decide interest rates, RBI Governor Raghuram Rajan on Tuesday appeared to favour doing away with the veto power of the central bank chief, arguing it would be better for a committee to decide the key rate rather than one individual.


He further said that while the details of the monetary policy committee (MPC) will have to be ironed out, "there are no differences between RBI and the government" on this matter.


"Currently, the situation is governor has a veto, that is, effectively all advice is only advice and ultimately decision is Governor's. So, if we continue to retain a veto, it doesn't change the current situation. It maintains the status quo. That is something to keep in mind," Rajan said.


And that's @roflGandhi ahead of Raghuram Rajan's address today.