RBI, the Government and the Manifesto.

The need to have a strong and independent Central Bank is paramount and essential to strengthen the economy and its financial system. An independent Central Bank is really a strong support to  the elected Government to perform and project its image nationally and internationally. The friction and simmering relationship between the Central Government and RBI if brought to market and public notice can only damage the image of both and bring more harm to the Government in the process as it would be  construed as failure on its own part to deliver as per its manifesto and pass on the buck to the central bank by dictating terms against established Prudence, Convention and Practices. The autonomy and health of the Central bank if ignored can have ripple repercussions on the Economy ,the Government and People. This has to be understood by the politicians in power and their supporting bureaucrats by introspecting and seriously pondering as to how the Central banks in advanced and major economies function and how independent and accountable they are to the Governments in power. No Central Bank can be a Department of the Ministry of Finance. BUREAUCRATS and TECHNOCRATS have  different roles to perform which are complementary to each other and beneficial to the Nation and all its stake holders.The Common objective is to have a well performing economy deriving the intended benefits as per the Manifesto of the Government in power  and keeping the Institution strong and enviable.

Dr T V Gopalakrishnan