New Delhi, May 17 (PTI) Joining the debate over hiving off the debt management activities of the Reserve Bank, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan has favoured setting up a separate Debt Management Office (DMO) under the aegis of the central government.
"There are many countries in the world where the public debt office is managed only by the government. Therefore, even here, the Reserve Bank can continue to play its role as a monetary authority, without having the DMO under it," the PMEAC chief told PTI.
The Reserve Bank has opposed setting up a DMO under the Union government to manage sovereign debt, saying only the central bank has the requisite expertise to manage market volatility.