RBI Governor opens his mind.

At last the Governor  opened his mind and openly brought out the frustration and harassment he suffered from the Government for  not only its lack of cooperation but also its impingement on the RBI's functioning. The seeds are sown by the former  FM  who set up the Financial Stability Development Council taking away the supremacy of RBI over the entire financial system and making it as any other organisation without appreciating the importance, excellent and effective role played by the RBI since its inception to maintain price stability with growth, exchange rate stability and financial stability. Further the present FM ensured that  the seeds sown  are grown properly with the required monitoring and support. RBI has given a wonderful support  with a deep understanding of the deep rooted problems of the economy  and extended full cooperation to the Government for all its socio economic development all these decades and the banking system has been developed on a very sound and healthy footing. This has been recognised world over. This Government  unfortunately has its own axe to grind and undermined the role of RBI and treated it as its own Department to be dictated openly, directly and indirectly there by ignoring the professionalism professed and practiced by the RBI meticulously keeping in mind the welfare of the masses and balancing the growth of the economy with its limited powers. Govt played a spoil sport and virtually expedited the crisis knowingly or unknowingly. Dr Subbarao will be remembered for his lone fight with the Government to keep the RBI and its spirit alive. He deserves a special and unique status in the History of Indian Economy and RBI  for his boldness and conviction on the way he carried out his responsibilities without yielding to cheap popularity and pressures from the Government. Institutions have to play their role effectively keeping in mind the benefits that go to the majority of the people irrespective of the situations that may warrant otherwise.This is what RBI demonstrated during the last five years of economically and politically unstable period. Former CAG Mr Vinod Rai and the Governor Dr Subbarao have created a new history and shown to the world as  to how  the Public Institutions should  be run  and deliver the goods expected of them as per the laws of  the land. This is the real strength of the economy.

Dr.T.V.Gopalakrishnan

(This comment is in response to Dr Subbarao's Parting shot appeared in different dailies on the 30th of August).