RBI's Viral Acharya may quit early : Media report
news/eye-on-india/videos/ monetary-policy-rbi-deputy- governorviral-acharyas- parting-shot-4129441.html
I've responded to a BS report on the subject today. Copied below:
M G Wa rrier
June 24, 2019
We need the RBI alive
It may be just coincidence that the news “Viral Acharya quits RBI” (June 24) becomes a headline on a day the first of the monthly column by former RBI governor Y V Reddy on “Whither central bank independence” gets published on another page in Business Standard. Time is running out and GOI has limited time left to save the image of RBI and send out a clear message that India’s central bank is not facing the threat of annihilation by vested interests.
Unlike other organizations, continuity at the top is a must for central banks. The normalization of the abnormality of short-term tenures for governors and his deputies in RBI from the beginning of the current decade has affected the efficient and smooth functioning of the organization. Centre failed to take cognizance of the mood of the incumbents who accepted top positions in RBI. Now they are not coming capitalizing their rapport with Delhi or for improving their CV for their next assignment. They enjoy ‘doing central banking’ as part of their professional advancement.
Delhi’s attack on Mint Road started with the attempt to truncate RBI using the report of the Financial Sector Legislative Reforms Commission as a sharp enough weapon. The timely arrival of Dr Raghuram Rajan on the scene, who had a clear understanding of the evolution and role of RBI helped the institution remain in one piece. Another attack, the gravity of which was not gauged by Dr Rajan, was to weaken the balance sheet of RBI in which effort Dr Bimal Jalan has been roped in.
It would appear, Centre feels a weak top management will make RBI an obedient arm of the government. If the game goes uninterrupted, the cost Indian Economy will be paying will be extraordinarily heavy.
M G Warrier, Mumbai