The article well articulated and addressed though to CPM is a timely warning to the Government for weakening an Institution which has well withstood the test of time and saved the economy from serious catastrophe imposed by external economies .RBI has saved the country from very serious crises like Asian Crisis of 1997, the 2007 Global Financial debacle, and other periodical economic disturbances caused both in advanced and emerging economies. The role of RBI in keeping the economy particularly its Financial system and the Rupee reasonably stable has been well acknowledged world over and the Governors of RBI have earned a special status among Central Banks Heads. is an acknowledged truth. Though RBI' autonomy is only in paper, it has some how managed to successfully carry out its functions independently despite all imaginable political pressures and keep itself insulated from the influence of the Governments in power thanks to the ingenuity with which all the Governors perhaps with some very few exceptions functioned. As an Institution,RBI has remained free from corruption and successful in keeping its professional competence in ensuring a sound and healthy financial system despite all possible interference s from the Governments. The Financial Code proposed if implemented in its present form will sound the death knell for RBI and it will become another white elephant in the economy.Hope wiser counsel will prevail and the Government will act sensibly. Governments will come and Go and but Institutions like RBI have to remain strong and perform to take the economy moving from strength to strength. Maintaining monetary stability in an economy in an atmosphere with all politico social economic pressures under democratic and populistic approaches is not an easy task for any Central Bank but RBI has successfully managed it will speak volumes for its professional competence and institutional integrity.
Dr T V Gopalakrishnan
( This comment appeared in Business standard against the article ON RBI by TCA Srinivasa Raghavan on the 1st of August).
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