RBI can do with some glasnost: Charan Singh
RBI can do with some glasnost: It should open up and share more information through seminars and workshops. Also, a Beige Book might be in order...
Clarity in communication
Apropos Charan Singh’s well-researched piece on transparency in policy communication by Reserve Bank of India (RBI can do with some glasnost, January 13), one has to concede that there is always scope for more openness in policy announcements by the central bank. The current decade has seen several short-term appointments at higher levels in RBI. This has affected the body language of the institution, despite its having a dedicated professional research team capable of providing policy inputs of a high academic standard.
To be specific, Duvvuri Subbarao being a professional bureaucrat was diplomatic, Raghuram Rajan was outspoken and the present governor Urjit Patel is soft-spoken and a man of few words but has no confusion about his role. The three governors had three different types of deputies and while the teams functioned harmoniously and effectively within, the way they communicated with outside world differed.
Presently, RBI uses its website effectively. While Raghuram Rajan was using his teaching skills to respond to developments having an impact on banking or monetary policy in his public speeches, Urjit Patel notifies RBI’s perceptions on such developments at rbi.org.in The papers on the impact of demonetization and a ‘welcome note’ when GOI announced PSBs’ recapitalization package are examples.
M G Warrier, Mumbai