B R Act amendment ordinance: Result of backseat driving by GOI till FY2014
Have posted online comments:
"Since independence, RBI has been performing several roles which are not assigned to Central Banks elsewhere in the world. The present Ordinance doesn’t add much to the regulatory powers or responsibilities, but will serve to tell the stakeholders that GOI and RBI are on the same page. RBI Act together with the pre-ordinance B R Act confer enough powers on RBI to regulate and supervise Banking System. Problems, including the present one relating to stressed assets emanated from back-seat driving by Finance Ministry using "ownership rights" both that of RBI and PSBs. Trespass into internal functioning including credit decisions and HR issues by finance ministry during the 10 years ending FY 2014 has done irreparable damage to the functioning of RBI and PSBs. Unusual situations call for unusual policy decisions. Ordinance should be seen in this perspective."
M G Warrier