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This is with reference to “Change of guard at Mint Street” (Business Line, September 15), where the author discusses his views on transferring the surplus from the RBI’s balance sheet to the Government of India.

It would be of interest to know the author’s reactions to a suggestion in another article in your newspaper earlier this year in which the author had pointed out that had the RBI followed the policy of marking to market its investments — a practice it enforces on others strictly — it would have been left with a loss of Rs 92 000 crore during the last year arising from the depreciation of foreign currency holdings and it would not have been possible to RBI to transfer Rs 46,000 crore as dividend to the Government.

Coming to Mr Venkitaramanan’s second point of targeting the consumer price index and not wholesale index for inflation management, will it not be prudent to consider the index which is more disadvantageous to the economy rather than the softest one for targeting?

G. R. Rao e-mail

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