RBI's vision

Foster a sporting spirit: This is with reference to ‘Perish the thought’ by Venky Vembu (From the viewsroom, July 24). Instead of spending crores hosting the Olympics, the government should sincerely encourage sports at the ground level. Even...

RBI’s vision
RBI Deputy Governor Viral Acharya’s observation that NPAs take precedence over rate cut, on the sidelines of the Delhi Economists Conclave last weekend confirms that there is continuity and consistency in the thought process of India’s central bank. It is comforting to see that RBI’s priorities remain undisturbed despite frequent changes at the helm. Recent years have seen RBI getting the necessary policy support from the Centre in performing its mandated roles efficiently. We need to see the evolution of the MPC and the deft handling of issues relating to management of banking system’s stressed assets as clear evidence of a change for the better in the Centre-RBI engagement.
While pressure will continue for rate cuts and other measures to make credit cheaper, so long as RBI is able to explain the rationale for its policy stances, hopefully, there will not be threats of ‘walking alone’ by the finance minister or a need for the RBI governor to opt to fall sick. With his refusal to sugar-coat or camouflage his clarity of perception to make others happy, Acharya, who has RBI’s priorities rightly set in his mind, promises to make good what the central bank lost by the return of Raghuram Rajan to academia.
MG Warrier


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