Letters: Balancing act required

Govt has exhibited courage in appointing US-based Viral Acharya to the key RBI post

With reference to the editorial, “‘Foreign hand’ at RBI” (January 5), choosing an outsider for the top post in a large organisation is fraught with risk, as the duel between Tata Sons and its ousted chairman, Cyrus Mistry, shows. 

When an organisation demands autonomy to the extent of differing with the owners, the selection of the new incumbent is a greater challenge. Viewed in this light, the government has exhibited courage in appointing the young, US-based Viral Acharya (pictured) to the key post of deputy governor of Reserve Bank of India. While his reputation as a champion of the independence of banks makes him suitable for the autonomous culture at the RBI, his critical views on public sector banks and the rule-by-centralisation style of the present government may bring him into conflict with the latter. Such a conflict is an inherent part of the job. He will also have to assuage the feelings of those within the RBI, who were eyeing the post.

The experience that former RBI governor Raghuram Rajan had with the government should be a reminder to both parties that mutual understanding along with the freedom to dissent brings more fruitful results than conformity.

Y G Chouksey   Pune