Not Infringing On RBI’s Autonomy: Finance Ministry
Finance Ministry responds to letter written by RBI employees union regarding RBI autonomy.
The Finance Ministry said on Saturday that it ‘fully respects’ the independence and autonomy of the country’s central bank.
This is in response to a letter written by the United Forum of RBI Officers and Employees to Reserve Bank of India Governor Urjit Patel objecting to the government impinging on the central bank’s autonomy.
Consultations between the Government and the RBI are undertaken on various matters of public importance wherever such consultation is mandated by law or has evolved as a practice. Consultations mandated by law or as evolved by practice should not be taken as infringement of autonomy of RBI.Finance Ministry statement
In its letter to the RBI governor on January 13, the United Forum referred to a news article that reported the Finance Ministry had sent a Joint Secretary to coordinate RBI’s cash operations - a move the Forum termed as “most unfortunate.
It also said, in connection to the post demonetisation flak the RBI has drawn, that it is “painful to note that RBI is being criticized from many quarters for its operational mismanagement” and that “such critics include even former RBI governors”.
This, it said, had dented the RBI’s image ‘beyond repair.’
May we request you that as the Governor of RBI, its highest functionary and protector of its autonomy and prestige, you will please do the needful urgently to do away with this unwarranted interference from the Ministry of Finance, and assure the staff accordingly, as the staff feel humiliated.Letter from United Forum of Reserve Bank Officers and Employees