What he says is correct. RBI should have the independence. But RBI with all its independence, did it do its duty properly, by allowing the NPAs to grow to such an extent. What happened to the supervisory powers of RBI over the banks. Every law works only if it is harrasment of the common middel income man. But for rich and poor nothing works.
Modi govt must take serious note of Acharya's comments and be careful while announcing sudden events like Demonetisation , which RBI was unaware of and was incapable of executing effectively. It was a total failure .
If RBI had a modicum of independence demonetisation would not have happened at all. First and foremost is to make the appointment of the governor like they do for election commissioner, not by the single signature of the PM.
The comedy of this platform is a vast majority of readers who post comments, cannot understand facts. Just because one can read and write does not mean that the person is intelligent.
Re: The RBI should understand it's existence
by human on Oct 27, 2018 11:19 AM
Yes, This way we will go ahead of our neighbors...in all aspects. Congratulations for your suggestions..
Re: Gas lighting of public. Redif style.
by Joy Kutty on Oct 27, 2018 11:19 AM
All institutions are falling one by one, right from EC, SC, RBI,CBI now what is left?
Surely central bank shd be independent. PSBs also behave in transperant manner. The defaulters of PSBs and others are for very large amounts. Crores. Unless competent officer approves such loans are not sanctioned. It is unpalatable that the higherups in PSBs (or for that matter any agency) followed rules. Even inspections could/did not notice any out of the way transaction. Are all these gentlemen innocent. So many things are going wrong and the blame is on SYSTEM. Independence of central bank has been there. One cannot say if that was/is sufficient to trace theSHOCKIMG lapses. So...