The independence of the Reserve Bank of India appears to be intact, experts said after a closely-watched board meeting of the central bank concluded.
After a nine-hour meeting on Monday, the RBI board decided to form an expert committee to look into how much the central bank should hold in its reserves.
"The independence of the central bank is still intact without the institution experiencing excessive pressure from the government," Rajiv Biswas, chief economist for Asia Pacific at IHS Markit, told CNBC by phone on Tuesday. "Some were expecting a fall out — this was a better outcome than expected."
The meeting has been closely monitored by investors because of heightened tensions between the RBI and the Indian government in recent weeks. Those issues include: monetary policy rates, easing lending restrictions as well as New Delhi's push to access surplus reserves from the RBI to boost the economy.