Backing Acharya, experts say govt's undue pressure on RBI causing friction

Instead of taking hard steps to reform PSBs, Centre continues to pass the buck and makes unwarranted insinuations, say retired RBI official

Former senior officials of the Reserve Bank of India (RBI) and banking experts are in favour of the hard-hitting speech by RBI Deputy Governor Viral Acharya, accusing the government of undermining the apex bank’s authority.

The main problem, they feel, are the statements by government officials blaming the RBI on critical issues such as slowdown in the economy, fall in the rupee or problems with public sector banks (PSBs). “The government itself is unwilling to take any harsh decision. Only a handful of the recommendations of the P J Nayak Committee have been implemented. Instead, government officials make loose statements