RBI autonomy 'sacred', should not be compromised, says former CEO Arvind Subramanian
6 years, 1 month ago

RBI autonomy 'sacred', should not be compromised, says former CEO Arvind Subramanian

Firstpost  

Mumbai: With the reins of RBI governorship passing to an ex-bureaucrat, former chief economic advisor Arvind Subramanian Wednesday said central bank autonomy is “sacred”, which should not be compromised. “RBI has a very good reputation for very good reasons maintaining the functional autonomy in decision-making and governance is absolutely sacred, we must not compromise on that,” he added. He said under Patel, the RBI has done a “commendable” job on decisions like prompt corrective action, dealing with NBFCs and also with individual private banks. On the election results, where the Bharatiya Janata Party got trounced in three important states, along with the events of the last two years suggest that every political manifesto in the next election will have a universal basic income-like scheme for the farmers, Subramanian said.

Rbi Patel Subramanian Pca Nbfc Excess Capital Ceo Arvind  autonomy  subramanian  pca  india  patel  key  ceo  arvind  strong  rbi  banks  nbfcs  sacred  financial  compromised

History of this topic

Reimagining how the Reserve Bank functions
2 years ago

Reimagining how the Reserve Bank functions

Hindustan Times  

The Supreme Court judgment on demonetisation last week appears to have reignited the debate on the relationship between the Reserve Bank of India and the Union government. The parliamentary committee wants to ensure that financial regulators such as RBI are adequately prepared to support India’s growth journey, the chair of the committee, Jayant Sinha, said in an interview to Mint …

Needed: A new relationship contract between RBI and govt
4 years, 4 months ago

Needed: A new relationship contract between RBI and govt

Live Mint  

Two recent books, one by former Reserve Bank of India governor, Urjit Patel, and the other by former RBI deputy governor, Viral Acharya, have reignited the debate on central bank autonomy in India. Section 30 of the RBI Act for instance, allows the government to “supersede” the RBI central board. The third lever of government control lies in the composition …

The design of RBI limits its abilities
4 years, 9 months ago

The design of RBI limits its abilities

Deccan Chronicle  

The Reserve Bank of India, India’s central bank, performs vital functions that are essential for keeping the Indian economy in robust health. Recently, the RBI has found itself lurching from one crisis to another as financial institutions such as non-banking financial corporations, cooperative banks and commercial banks collapsed like dominos one after the other. The RBI draws its powers from …

Government considering giving more powers to RBI to regulate NBFCs: Sitharaman
5 years, 6 months ago

Government considering giving more powers to RBI to regulate NBFCs: Sitharaman

India TV News  

The government is considering strengthening the Reserve Bank's regulatory and supervisory powers over the non-banking finance companies, Finance Minister Nirmala Sitharaman said in the Lok Sabha on Monday. The central bank, she added, has also informed that with a view to strengthen the NBFCs and maintain the stability of the financial system, it has been taking necessary regulatory and supervisory …

Opinion | An intruder undermines RBI
5 years, 10 months ago

Opinion | An intruder undermines RBI

Live Mint  

Bankruptcy proceedings usually involve protecting a firm’s assets from creditors. The ruling by the bankruptcy court, which is overseeing the government- Already India has lost two RBI governors because, among other things, they dared to ask banks to acknowledge problem loans in time, classify them correctly and make adequate provisions for losses. Already-delayed Indian tribunal proceedings will stretch forever, with …

Opinion | The whys and what ifs of central bank autonomy
5 years, 11 months ago

Opinion | The whys and what ifs of central bank autonomy

Live Mint  

Why should central banks be autonomous and what are the consequences of the government infringing on such autonomy? For example, voters elect a government to create more jobs, but the central bank can keep interest rates high to stifle investment and, consequently, job creation. India’s history since Independence is one of high state and central government deficits, a weak banking …

New RBI governor should follow his "dharma" to protect central bank's autonomy, says Rangarajan
6 years ago

New RBI governor should follow his "dharma" to protect central bank's autonomy, says Rangarajan

Firstpost  

Rangarajan said there are questions about the deflator that has been used and also on data on company affairs. Mumbai: Shaktikanta Das is not the first bureaucrat to be appointed as the Reserve Bank of India governor and should follow his “dharma” to protect RBI’s autonomy like his predecessors, former central bank governor C Rangarajan said on Monday. Once they …

Much ado about nothing: Demystifying the needless hue and cry over the RBI
6 years ago

Much ado about nothing: Demystifying the needless hue and cry over the RBI

Op India  

“The only function of economic forecasting is to make astrology look respectable,” remarked the legendary Economist John Kenneth Galbraith. Whoever in Congress thought of RBI autonomy and role in influencing election outcome doesn’t have enough knowledge to even make credible sounding arguments. According to the RBI Act’s Section 7, “the central government may from time to time give such directions …

Amidst speculations over Govt-RBI stand off, Jaitley asks how a mere discussion be considered ‘destruction’ of an institution
6 years, 1 month ago

Amidst speculations over Govt-RBI stand off, Jaitley asks how a mere discussion be considered ‘destruction’ of an institution

Op India  

Finance Minister Arun Jaitley, while speaking at the Times Networks India Economic Conclave today, stated that though there are ‘two or three areas of differences’ between the RBI and the Government, how a mere discussion on its functioning could be considered “destruction” of an institution. Amidst allegations by the opposition that his government has created a situation wherein the Reserve …

Promise integrity, autonomy of RBI: New governor Shaktikanta Das takes charge
6 years, 1 month ago

Promise integrity, autonomy of RBI: New governor Shaktikanta Das takes charge

Hindustan Times  

New Reserve Bank of India governor Shaktikanta Das took charge on Wednesday, promising to uphold its autonomy and integrity, a day after the government moved swiftly to appoint him to the helm of the central bank to fill the vacancy left by Urjit Patel’s resignation. On Tuesday, he was appointed RBI’s 25th governor, replacing Patel, who resigned on Monday with …

After Shaktikanta Das' Appointment as RBI Governor, Arvind Subramanian Reminds Autonomy is Sacred
6 years, 1 month ago

After Shaktikanta Das' Appointment as RBI Governor, Arvind Subramanian Reminds Autonomy is Sacred

News 18  

Mumbai: With the reins of RBI governorship passing to an ex-bureaucrat, former chief economic advisor Arvind Subramanian Wednesday said central bank autonomy is “sacred”, which should not be compromised. “RBI has a very good reputation for very good reasons maintaining the functional autonomy in decision-making and governance is absolutely sacred, we must not compromise on that,” he added. He said …

Arvind Subramanian says RBI's regulatory failure created IL&FS mess, calls upon central bank to step up ability of supervision
6 years, 1 month ago

Arvind Subramanian says RBI's regulatory failure created IL&FS mess, calls upon central bank to step up ability of supervision

Firstpost  

Mumbai: Terming the IL&FS crisis as a regulatory failure, former chief economic advisor to finance minister Arvind Subramanian has said the Reserve Bank should be held responsible for the crisis at one of the largest entities it has been regulating. But I think they are wrong” he says and quotes the late British prime minister Margaret Thatcher who used to …

Govt does not need money from RBI in next 6 months, says Arun Jaitley; 'respect autonomy' of central bank
6 years, 1 month ago

Govt does not need money from RBI in next 6 months, says Arun Jaitley; 'respect autonomy' of central bank

Firstpost  

Critics accuse the government of trying to undermine the RBI’s authority, but Finance Minister Arun Jaitley said his government respected the institution’s independence. Mumbai: The government does not need money from the Reserve Bank of India in the next six months,finance minister Arun Jaitley said in a TV interview telecast on Friday, rejecting Opposition charges the government was seeking access …

Government, RBI must work together, end turf war
6 years, 1 month ago

Government, RBI must work together, end turf war

Deccan Chronicle  

The ostentatious turf battle between the Union finance ministry and the Reserve Bank of India is not the real issue. As India still reels under the socialist module of controlling economic activities, which the present government perpetuates, the public sector banks are pushed and prodded to finance government schemes, whether it be infrastructure projects, agriculture loans and loan waivers, start-up …

RBI autonomy: Bimal Jalan says it’s central bank’s job to implement govt policy, governor should quit if differences cannot be resolved
6 years, 2 months ago

RBI autonomy: Bimal Jalan says it’s central bank’s job to implement govt policy, governor should quit if differences cannot be resolved

Firstpost  

The sharply depreciating rupee amidst rising global oil prices and the massive foreign funds outflow from the capital market are not crises If there are irreconcilable differences of opinion between the government and the regulator, then ‘whoever is heading the agency should step down,’ said Bimal Jalan, former governor to RBI to Mint. The sharply depreciating rupee amidst rising global …

Opinion | RBI’s independence needs to be protected
6 years, 2 months ago

Opinion | RBI’s independence needs to be protected

Live Mint  

The relationship between the government and the Reserve Bank of India used to be cooperative and productive, but has vitiated over the past decade. Public airing of differences must be eschewed and the government must take steps to strengthen RBI’s independence. He also warned that governments that do not respect central bank independence will sooner or later incur the wrath …

Amid Spat Between Govt & Central Bank, Focus Returns on RBI Board
6 years, 2 months ago

Amid Spat Between Govt & Central Bank, Focus Returns on RBI Board

The Quint  

But the role of the central board, in theory, is very different from what it has been in practice. The board has been a consultative body rather than a decision making one, said the person quoted above while adding that the board, if it chooses, is fully empowered to make decisions. Issues ranging from the flow of credit to small …

Government trying to destroy autonomous structure of RBI: Congress
6 years, 2 months ago

Government trying to destroy autonomous structure of RBI: Congress

The Quint  

New Delhi, Oct 30 Sharpening its attack on Finance Minister Arun Jaitley, the Congress on Tuesday accused the government of trying to destroy autonomous institutions like the Reserve Bank of India and alleged him of interfering in the work of the central bank. Equally important is to remember the role of the RBI as the payment regulator cannot be diluted …

RBI vs Narendra Modi government: Public spat won’t help, but India’s best bet is not to mess with its central bank
6 years, 2 months ago

RBI vs Narendra Modi government: Public spat won’t help, but India’s best bet is not to mess with its central bank

Firstpost  

Almost every RBI governor, be it Y V Reddy or D Subbarao, have pitched for central bank autonomy in public forums inviting the wrath of the government of the day. The turf war between the Reserve Bank of India and the Narendra Modi government on the subject of the central bank’s autonomy is out in the open and is turning …

Viral Acharya's comments on 'effective independence' of RBI: Employees association seeks central bank's autonomy
6 years, 2 months ago

Viral Acharya's comments on 'effective independence' of RBI: Employees association seeks central bank's autonomy

Firstpost  

Kolkata: Days after deputy governor Viral Acharya raised concerns over the central bank’s autonomy, the Reserve Bank employees association Monday came out in support of the views, saying “undermining the central bank is a recipe for disaster” and government to stop nibbling at its autonomy. Delivering the AD Shroff memorial lecture last week here, Acharya said governments that did not …

Viral Acharya is right; RBI should be left alone to do its job, not coerced for political reasons
6 years, 2 months ago

Viral Acharya is right; RBI should be left alone to do its job, not coerced for political reasons

Firstpost  

The most recent debate has been on the independence of the central bank. Next, on the issue of control of public sector banks, the central bank is unable to do what it has done for private banks especially on governance issues as this is where the problem is founded. Also, in the past, when some private banks were down under, …

Opinion | Undercutting the RBI will not end well
6 years, 2 months ago

Opinion | Undercutting the RBI will not end well

Live Mint  

Time was when capital markets put a premium on “strong men”. Things must have got serious because RBI deputy governor Viral Acharya used two successive public speeches to communicate RBI’s discomfort with the government’s repeated attempts to undermine the central bank. It is true that the RBI’s ledger has many red marks and there are many things that the central …

Signs of policy struggle between RBI and govt
6 years, 2 months ago

Signs of policy struggle between RBI and govt

Live Mint  

Mumbai: In a sign of a mounting policy struggle between the Reserve Bank of India and the government, a top bank official warned on Friday that undermining a central bank’s independence could be “potentially catastrophic”. “Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue …

RBI deputy governor bats for its independence
6 years, 2 months ago

RBI deputy governor bats for its independence

Live Mint  

Mumbai: Reserve Bank of India deputy governor Viral Acharya on Friday stressed the importance of a central bank’s independence and said direct intervention and interference by the government in the operational mandate of the central bank negates its functional autonomy. This way, the institutional arrangement of independence, transparency and accountability to the public not only balance but also strengthen the …

Discover Related