You are here: Home » Opinion » Columns
The undoing of doing business in India
Business Standard

RBI vs govt: Central Bank would do well to seek autonomy within a framework

There is need for tactical give-and-take: The board should advise in favour of more liquidity in the system, and set up a committee to decide if RBI has surplus reserves to hand over, writes T N Ninan

Topics
Rbi Vs Government  |  Urjit Patel  |  Manmohan Singh

T N Ninan 



T N Ninan

The general drift of published commentary since the spat between the government and the Reserve Bank of India (RBI) became public has been as follows: A showdown should be avoided, and both sides should pull back; the government has a point on the need for more liquidity in the system; drawing on RBI reserves to keep the fiscal situation under control is not a good idea; finally, after having packed the RBI’s central board with political fellow-travellers, to now ask such a board to take decisions so far left to the management is best avoided. The board can provide oversight and guidance, but on technical matters the decision must be that of the professional management. In broad terms, the commentariat has come down on the side of the Reserve Bank while asking it to be more flexible and more open to discussion and persuasion.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Fri, November 09 2018. 17:05 IST

RECOMMENDED FOR YOU

.