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The revised draft of the Indian Financial Code (IFC) has created a big controversy on whether it seeks to curtail the Reserve Bank of India's power over monetary policymaking. In a telephonic interview with Abhijit Lele on the role of the commission, Justice B N Srikrishna, chairman of the Financial Sector Legislative Reforms Commission (FSLRC), says it's the government's privilege to accept or reject the report with or without modifications. Edited excerpts:
As a chairman of the FSLRC, how do you look at the controversy over the revised Indian Financial Code (IFC)?
FSLRC's job was over when it submitted the report along with the draft Indian Financial Code. It has no role in preparing the revised draft.
What's your view on the provisions in the revised draft?
It is the privilege of the government to accept or reject our (FSLRC's) recommendations. We prepared a report to help the government in policymaking. It is the evolution of policymaking.
Did the government consult you while doing revising the draft?
The government did not approach us. After getting feedback on the revised code, the government would prepare a Bill for consideration of Parliament.
