The need to retain RBI with its original glamour.

If  one were to make a serious analysis of RBI's functioning now, it can be unbiasedly observed that the institution has losrt its glamour and image over a period. It had enjoyed the credibilty of the Government, various markets and finacial institutions.It used to command respect, fear and friendliness and it was free from corruption charges generally. With the gradual relaxation of its powers, responsibilities in the name of liberalisation and development of the economy, RBI has been clipped its wings and the Government has taken over its supremacy. The departments have been drastically reduced and the number of staff have been cut to more than one third. Regulation and supervision which was a core function to make the Finacial  system strong, eficient, sound and supportive of the economy has been taken away quoting high sounding words and jargons just to convince, confuse and finally fool every one. For a developing country like India with all sorts of geo political, social, economic, intellectual conflicts and contradictions, an independent Central Bank has a  unique role of a referee and responsibility to take the nation  and its people forward  with all welafare related economic activities. What is happening now is virtually killing this institution.   A deep analysis of what has happened over a period particularly after the UPA has taken over in 2004 would indicate that RBI has been losing its eminent position  as the conscience keeper of the Government and the pivotal agency  for ensuring strong economic growth..Some how Dr Y V Reddy and Dr  Subba Rao resisted to the extent possible but the presnt Governor with all his opposition to the present stance of the Government and  intellectual conviction to retain RBI' s autonomy  does not appear to be successful so far  to resist the combined move of the politicians and the bureaucrats to make it an institution to be run as the the Government dictates.. They have  very cleverly taken some of his moves as very handy to convince him and reach their destination.

Dr.T.V.Gopalakrishnan (Personal Views).