Govt vs RBI: When governors of central bank fought for its autonomy

Acharya's assertions are not surprising considering he himself has been a proponent of keeping central banking separated from any government oversight

Deputy Governor Viral Acharya’s exhortation to protect central banking autonomy should not come as a surprise to anyone considering the long history of a turf-war between the central bank and the government, especially the finance ministry. Tension between the two is as old as the central bank itself. The RBI’s first governor Sir Osborne Smith had differences with the government over exchange rates and interest rates. He resigned before completion of his term. The RBI’s first Indian governor C D Deshmukh has had his difference with the government on nationalisation of the RBI. Deshmukh wanted to keep the central bank