Letters: Wielding power

With reference to “RBI independence: The middle ground” (January 23), the author has summed up the issue of Reserve Bank of India’s (RBI) autonomy succinctly when he says that all humans are the same everywhere, and all humans desire arbitrary power.

Having said this, the ruling politicians irrespective of their affiliations to any party only want subservient monetary authority. They do not bother about the regulations and other issues coming in the way of enjoying a relationship with the monetary authority. They are willing to cede control on issues (monetary policy, bank licences) that do not matter to them. Demonetisation in November 2016 has simply showcased the government’s supremacy over the RBI. Not even an important wing of the government (ministry of finance) was in the picture. Don’t blame the Bharatiya Janata Party (BJP) for this phenomenon. The United Progressive Alliance-I and II governments and the Congress regime under Indira Gandhi have overlooked the RBI on several instances (nationalisation of banks twice, loan waivers, directives to public sector banks on retail lending, top appointments in public sector banks). The current government has only taken a cue from such precedents.

Politicians cannot be blamed when we know that to retain and remain in power a typical politician has to use all the instruments in his armoury. In the process, he may overlook many institutions created by Parliament. If the institutions are allowed to wield power, they are either trivial or do not affect politicians.

K V Rao | Bengaluru

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