The Cag Bogey

Now, the Reserve Bank, which tends to appoint committees for almost every ill that afflicts the Indian economy, is thinking of one more. The newest entrant: a committee, headed by the deputy governor Y V Reddy, to examine forex management by public sector undertakings (PSU). The problem, apparently, is this: PSU management are reluctant to develop much-needed forex trading skills for fear of queries from the Comptroller and Auditor General of India. The Reddy committee is expected to take up this issue with the Comptrollers office and prescribe a format for forex management by the PSUs.