RBI Wants Clarity On AP Capital

Though the AP government has withdrawn the ‘Three Capitals’ bill, it is stubborn to have multiple capitals and may bring a new bill in the coming budget sessions or later this year. With the state government withdrawing the ‘Three Capitals’ there is a lot of uncertainty on the capital location.

This confusion has led the Reserve Bank of India to delay establishing its branch in Andhra Pradesh. In detail, Amaravati Development Authority Chairman Jasti Veeranjaneyulu had written a letter to the RBI, requesting the central bank to open its branch in AP. This letter was penned way back in October 2021.

Responding to the letter, RBI deputy general manager MK Subhashree stated that the branch of the central bank will be set up once there is clarity on the caption region. “The matter related to opening of RBI office at the newly formed Andhra Pradesh state can be pursued only after the state government finalises the location for its capital city,” read the letter of RBI manager.

This means the RBI will wait until the AP government resolves the confusion on capital and this may take a lot of time than expected. If AP CM YS Jagan can intervene in this matter, the RBI will definitely give a thought but is CM Jagan ready to address this issue?