RBI Governor Raghuram Rajan today asserted that Union Finance Minister Arun Jaitley is on the same page as him on creating a Public Debt Management Agency – PDMA. Speaking to reporters at the customary post-policy press conference in Mumbai, Dr. Rajan said it would be unwise to move things away from the Reserve Bank without discussions and disrupt a smooth-functioning market for "hypothetical gains". The comments came weeks after the government decided to delete the provisions in the Finance Bill regarding the creation of an independent Public Debt Management Agency and also shifting the regulation of the secondary market for government securities from RBI to SEBI. Dr. Rajan said there is a "reasonable case" for creation of the PDMA as a part of the function is already being carried out from the Finance Ministry. However, on the issue of regulation of secondary government bond market, the RBI governor said that it would be wise to have a deeper dialogue. According to some experts, there is a conflict of interest with the RBI acting as both the investment banker managing the nation's liabilities as well as handling the monetary policy. Dr. Rajan however clarified that RBI regulates only the over-the-counter short-term money market instruments like government bonds, options and the currency and there is a "stronger link" between those and the monetary policy.