This approach to demand RBI Rs 43000 crores towards Bank recapitalisation as NPAs of banks swelled under RBI watch shows the arrogance of the Govt and admission of its own failure to make the banks perform as there was no conducive economic environment for any one to perform in the economy as revealed in the continuous falling in GDP over the past few quarters.RBI no doubt failed to successfully implement the demonetisation scheme and also failed to make the banks accountable for the accumulation of bad loans perhaps by cautioning appropriately the Govt for its undue interference in RBI's own functioning and that of the Public sector banks and taking away the independence and professionalism of both RBI and PSBs. Instead of finding fault with the Finance Ministry and the bureaucrats for their failure in creating a conducive economic environment with their own economic and administrative policies, running after RBI to pass on the surpluses ignoring the Central Banks'own prudential policies and historic approach so far pursued keeping the interest of the macro economy and in safeguarding the value of the rupee amidst the dynamics seen in and around the world only shows the Govt in poor light. RBI has always been a strong supporter of the Government and has to be so statutorily as per its set up but it has to be allowed its own independence and freedom to deliver in the interests of the economy and the Government in power.
The Governments' approach seems to be augmenting revenue by all means and what for these revenues are meant is not understood. The prices of gas, petrol and diesel and almost all commodities have increased and the tax policies have not given any sort of relief to people including pensioners and senior citizens even without any pension benefits.
Dr T V Gopalakrishnan
(This commend was given in response to an article Bank Recapitalisation:Government may turn to RBI for Rs 43000 crore as bad loans swelled under their watch that appeared in FE dated 2/11/17)
