Understand the importance of RBI and allow it to function in the interests of the economy.

RBI balance sheet cannot be equated with the PSU's balance sheet and the Government cannot expect RBI to go on declaring dividends ignoring the responsibilities of RBI to manage the risks the Country can face both domestically and internationally. RBI's capital has remained unchanged at Rs 5 crores since its inception in 1935 and based on this capital the dividend paid to the government is of very high order.RBI being a very prudent conservative and responsible organisation has managed its affairs extremely well and has been transfering maximum surpluses to the Government and at the same time building up reserves to meet all contingencies. The approach of the Government to snatch away the resrves is akin to selling off family silver either out of greed or because of its arrogance to dictate to a well run institution  and weaken it or beause of its inefficiencies to manage its own fiscal. In any case, this requires a public debate factoring into the practices followed by the well run central banks of different countries. RBI unlike other corporates is definitely not run on commercial considerations is what the Government should realise and RBI is always backing the Government for all its socio economic policies with its highly professionlistic approach keeping utmost honesty , integrity and comepetence in delivering its assigned functions with or without autonomy. RBI has earned its International status and recognition inspite of the intervention from the Government on its day to day functions speaks volumes about its professionalism in pursuing very sound monetary policies and keeping the financial system of the country so far healthy and risks free. It has also ensured to keep its own finances strong is a master stroke and the Government should feel comfortable that its central bank is economically sound and keeps the country's economy stable and steady with all  its limitations on the role of the Government. The Government cannot ignore the fact that unlike other central banks of different countries RBI plays a unique role in supporting the developmental functions of the Government and tolerates all the political gimmicks played  using the banking system  ignoring the basic functions of banks ie acceptance of deposits and lending for the expansion of the economy and its all round growth. Dr T V Gopalakrishnan (This comment is in response to the Editorial Divided on Dividends that apperaed on the Hindu Business Line dated 8/917).