Letters: Who's the boss?

Last Updated: Tue, Feb 14, 2012 19:20 hrs

Apropos “Regulating the regulators” (Raisina Hill, February 14), the finance ministry has many subtle ways of undermining the independence of the Reserve Bank of India (RBI) and nominating one more representative to the RBI board is one such move. There have been many instances in which the ministry has wielded its power. And when the RBI governor himself reports to the finance minister, where is the question of independence? Also, the ministry does not merely function as the prime shareholder of public sector banks. It has the final say in the appointment of CEOs of these banks. In fact, it is not even necessary to regulate the regulator (RBI). The banking regulator is already aware of its subservient role. Its independence will only be restored if the Centre honestly believes in doing so. Till then this will remain wishful thinking.

K V Rao, Bangalore

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