Letter to BS: RBI's autonomy takes another hit as Acharya heads for exit

This refers to “Viral Acharya’s last day at RBI will be July 23” (June 25). The Reserve Bank of India Deputy Governor Viral Acharya is the third among those entrusted with management of the country's economy, quitting their posts before expiry of their terms, in past one year.

 

It started with Arvind Subramanian, former chief economic adviser, who put in his papers in June 2018, three months before his term was to expire at the end of September that year. The next was former governor Urjit Patel, who sought to be relieved in December 2018 though he still had nine months to go. Now, it is Acharya. Earlier, Raghuram Rajan had to go at 53 when his brief three-year term expired. He went on record saying he would have considered continuing, if an extension had been offered to him. Obviously, the authorities were either indifferent to his continuation or actually wanted him to go.

 

When the country is passing through a critical phase presently, politically and economically, economy is not growing at an adequate rate and unemployment is at an all-time high, it needs continuity in personnel entrusted with the management of the economy. Authorities may consider examining the causes underlying the ongoing frequent disruptions that are not healthy and not in the country's interest. Steps must be taken to ensure they don't occur any more.

 

R C Mody, New Delhi

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