Limits of autonomy: T T Ram Mohan
The Hindu, October 17, 2014
THE LIMITS OF AUTONOMY: T T Ram Mohan
With reference to the observation, “ The government is said to be planning an eight-member MPC dominated by five external members, as proposed by the FSLRC….”, I recall a recent report in the media saying that RBI Governor may get a veto in the proposed MPC. I had responded asunder:
“While such gestures to calm dissent are normal in governance, the recent initiatives from the finance ministry, including the hurry with which some of the recommendations of the Financial Sector Legislative Reforms Commission are being pushed through for implementation, gives an impression that new dispensation in Delhi has not fully recovered from the hang over of the previous coalition government’s ‘give and take’ approach in decision making.
It would be an unhealthy message to the regulators and all stakeholders in the financial system, if such ‘concessions’ to RBI and its present governor appear to be a privilege available to some, in certain situations. There is a chance of lesser mortals among regulators becoming less amenable to government’s guidance.
Government should not shy away from normal procedures and parliamentary debates before implementing measures of long term implications to the economy. The sooner the transparency in policy formulation and respect to legislative processes and procedures are restored, the better for the country.”
M G Warrier, Mumbai