RBI's Autonomy is highly flexible

The RBI's independence depends on the FM's and Governor's good timings and changes in the economy is what one can infer. It also depends  on who has brought  the Governor to RBI and further how the Governor conducts himself and  obliges the Government in power. The Government expects RBI to act as per the thinking and philosophy of the Government and the action of the  Governor is dependent on his diplomacy to handle the FM. He can always say YES to the FM and deliver just opposite and justify his actions and Convince the FM that why he has done so and how his actions have helped FM. The FM  in turn, if gets Convinced apprciates  RBI's independence and Governors' independent thinking. If not Convinced , the FM does the same thing to RBI.He tells something to the Governor and does just opposite of what he has told. He   directs the Secretary on RBI  Board  to act in a particularl manner and  proves to be  an irrirtaion and stumbling block for all RBI's moves. The Government takes actions ignoring the RBI's presence and without taking  into confidence the RBI for all its policies. Love and hate and hide and seek games are always played between the Government and RBI keeping the  so called autonomous position of RBI in tact. Finally the changes in the Fundamentals of the economy if any justify the stance of both RBI and the Government and that decide whether RBI has autonomy or not? Unfortunately since Dr SubbaRao took over the reins of RBI the economic fundamentals never favoured and the gap between the Government and RBI widened giving rise to the controversy on RBI' s autonomy. The induction of the new Governor by the UPA Government and subsequent take over of the Government by NDA have created a fresh round of controversy on RBI's autonomy and again unfortunately the economic fundamentals have not registered favourable changes to determine whether RBI has the independence or not. RBI autonomy cannot be defined and determined as it often fluctaues depending on the FM and the Governor in power and changes in the economic fundamenrtals. .

Dr T V Gopalakrishnan

(This comment given in BS is in response to an article RBI  a fly in the bottle that apperaed on the 9th August 2015).