Taking a cue from the bank unions, the employees and officers of the Reserve Bank of India (RBI) have formed an apex body to fight for their demands.
The newly-constituted body _ the RBI Officers-Employees' United Forum _ has not pressed for any economic demands, but is determined to guard the existing authority and functions of the RBI.
The forum feels threatened by the second report of the Narasimham Committee as it seeks to divest the RBI of its regulatory and supervisory authority and leave it to carry out monetary functions only.
The forum submitted a memorandum to RBI Governor Bimal Jalan on last Friday stating their objection to the Narasimham Committee-II report. The apex body of staff and officers will oppose the committee's suggested new agency _ Board for Financial Regulation & Supervision.
Former RBI governor C Rangarajan is reportedly said to have agreed to the point of view.
According to Rangarajan, the RBI's main problem did not arise from monetary policy, but from asset management, poor asset quality, inadequate capital and the like.
Hence, regulation and supervision would continue to remain important areas for the Reserve Bank.
Even international experience does not suggest giving a blanket prescription for truncating the functions of the central bank. The new forum has as its constituents the All India Reserve Bank Employees Association, All India Reserve Bank Workers Federation and Officers Associations of RBI.
