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How finance secretary's clash with govt over NBFCs cost job
India's Finance Secretary, Subhash Chandra Garg, has stepped down from the IAS after clashing with the government over changes to the RBI Act.
The new rules would have let the RBI handle troubled Non-Banking Financial Companies (NBFCs), but Garg felt a separate solution was better and voiced his concerns.
Amendments went through while Garg was away at G-20 meeting
While Garg was away at a G-20 meeting in June 2025, the amendments went through without him.
On return, he suggested three tweaks—only two were accepted, and key officials pushed ahead with giving RBI more power.
When asked to change official note sheets against his principles, Garg faced an ethical dilemma and chose to resign rather than compromise on what he believed was right.