Where is RBI's autonomy?

Where is RBI's autonomy? The Government has appointed two Directors on RBI's Board in the place of one to dominate the Board and over rule RBI's approach to policies. The setting up of FSDC has taken away RBI's supremacy and is made equal to SEBI and IRDA which have only limited regulatory / supervisory role on stock market and insurance market respectively , where as RBI' responsibility includes ensuring economic growth with price stability, monetary stability which encompasses regulation of the entire financial system which comprises of various markets, institutions and products. The interference of the Government by way of issue of Directives to banks directly and advising them or influencing them to tune to the Government's thinking is a violation of RBI's powers in terms of Banking Regulation Act. The setting up of FSLRC is only to clip the RBI's wings and the report is as desired by the Government. The Governor has expressed his reservations against many of the recommendations of FSLRC which do not seem to have been taken seriously both by the Government and the bureaucracy. The Government has all intentions to take away the  main function of RBI ie deciding the monetary policy by appointing a Committeee to be exlusively set up  for the purpose. The position of RBI in having a say in the appointemnt of the Committeee is unclear and the way the Government treats RBI these days, chances are that Government will have its own choices of members. The interests shown by the Government to do away with RBI's powers to manage Forex business and Public Debt managemnt are nothing but to make the Institution as any other white elephant of the GOI. Further , the management of staff welfare which is generally on par with the Government of India rules has been taken away by the Government and the pension of RBI's retired staff has not been updated periodically despite an agreement to that effect with the Central Government in 1990 itself. Though  RBI does not depend on Government's resources for extending pension to its staff where as, the Government manages to transfer huge resources  from RBI by way of transferring its surplus. Pensioners also suffer due to inflation and non revision of their pittance pension somehow seem to have been merrily ignored by the Government using its power of dominance over RBI. The bureaucracy's ego and jealousy on RBI's professionalism, honesty, excellent name in the market for its non corrupt practices cannot come in the way of RBI's autonomy. The pensioners have stopped themselves identifying with RBI as the pension drawn by many senior most officers are less than even that of class d and c categories of the Govt. The FM should make an independent analysis of RBI's contribution and take his own stand. Keep away bureaucrats from RBI. The Government will be strong  the RBI will be strong supporting the Government and the economy will be on the growth trajectory fast.  

Dr.T.V.Gopalakrishnan

( This cooment a bit modified has been sent to Indian express on 4th April 2015).