The argument to bring RBI under the fold of CAG audit does
not sound logical and is uncalled for unless the intention is to take
away even the remaining independence of RBI. RBI does not raise resources from any
source as its incomes are basically by way of interest from Govt on the
securities.The incomes of RBI are from assets owned on behalf of the
Govt and from the Forex reserves maintained and invested. Unlike other
Statutory Regulatory agencies RBI has no way of raising resources from
the institutions or public except the CRR from banks which are essential
as a monetary tool to influence money supply and discipline banks.The
RBI earns interest on lending to Govt and banks which are transparent
and as per well laid down procedures and practices. RBI has never been a commercial organisation and it is not driven by profit considerations. Its functions also do not envisage to frame policies to make money for itself and by its staff in any manner. The only area perhaps
there is scope at all for audit by CAG is on expenditure side which is kept to
the barest minimum because of Conservativeness the RBI has been
pursuing since its inception.Here also, RBI has well laid down system
and procedures and they are all transparent.RBI runs its show with
minimum staff and efforts are continuously on to reduce the staff
further Expenditure is seen as an allergy and staff have been well trained to be so economical that even genuine needs are often overlooked..Even the pay and perks of staff are not comparable and very
favourable when compared with many Central banks of the world and large
Corporates in India. The pension payable is not even on par with the
Central govt employees and many are drawing a pittance making it
difficult to make both ends meet. Less said the better about the conditions of pensioners because of miserly attitude of RBI towards pensioners.In these circumstances, it is surprising to observe that on what basis the idea of bringing RBI
under CAG audit has emerged.RBI is perhaps the only institution which is self disciplined, self audited and having all possible checks and balances on expenditures.Corruption is unknown to RBItes is a well acknowledged truth.
Dr.T.V.Gopalakrishnan
(This comment in a modified form appeared in response to the article Who would audit RBI? in ET dated 6/6/13)
1 comment:
The arguments of TVG Sir have merit. There had been attempts in the past advocating to bring RBI within the purview of CAG Audit (during 1992 securities scam also)But the Government of day did not find favour with such moves and wanted RBI to have its own autonomy.
Things appear to have changed now. With Governor,RBI not yielding to MOF, the whole machineary seems to have become hostile to RBI and somehow want to force RBI in submissiveness. Report of the FSLRC is another attempt in this direction. When RBI the central bank of our country is made to forego its independence, that will be black day in our history. May good sense prevail upon them who are out to destroy RBI, an oustanding institution nurtured over years.
Manohar Mahajan
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