There was a time when eminent and dignified people were appointed as governors. They came from different backgrounds, were non-controversial and were of good standing. Once a person was made governor, it was considered the last phase of the individual’s public life. That changed when Indira Gandhi started appointing her loyalists, many of them often defeated, failed and ‘inconvenient’ politicians. This rapidly changed the colour of this once dignified office. So it is not surprising to find governors appointed by the UPA refusing to quit. It is time constitutional amendments were made to change the situation.

VS Ganeshan

Bangalore

Fundamental flaw

This refers to the article “A flaw in the CSR design” by Tulsi Jayakumar (June 19). Corporates involving public participation in the form of shares cannot be said to be investing in a specific location. The purpose of CSR is to benefit people of all regions. The sectors requiring attention are public health and education and CSR funds should be used for these. A central statutory agency should control utilisation of this fund based on areas where there is need for it.

TR Anandan

Coimbatore

RBI fights back

With reference to the editorial “Regulating the regulators” (June 19), it must be pointed out that the first serious indictment of the FSLRC was made in this paper by SS Tarapore in his article “A plot to destroy RBI” (May 3, 2013). As rightly pointed out in the editorial, it is quite possible that the RBI Governor’s observations may get entangled in criticism in the context of the timing, and the seriousness with which they have been made can get diluted. But, for those who have been following the matter, Rajan’s statements do not come as a surprise. It is a relief that there is some strong leadership in the financial sector.

Not much research is needed to conclude that the finance ministry and FSLRC, in a hurry to resolve certain minor issues, ignored the evolution of the role of the RBI and the care with which the bank has nurtured the financial sector.

It would appear that the Commission did not get an opportunity to understand the present relationship between the RBI and the Governent. The regulatory apparatus and legislations in the financial sector are in working condition. Till Rajan’s emergence, the FSLRC’s effort to re-invent the institutional structure of regulatory bodies had pushed regulators and supervisors with the exception of the RBI to a confused state.

Perhaps the purpose would be served better if the RBI is allowed to function with its present mandate and a coordination committee sorts out issues among the remaining regulators. If the Government’s aim is to reduce the number of regulators, a merger of the regulatory agencies outside the RBI could be considered eventually.

MG Warrier

Email

The proposal by FSLRC to set up a tribunal to review the RBI and the SEBI’s decision is unwelcome and Rajan’s criticism of the proposal is valid. The RBI’s actions on monetary policy are based on well-established systems and practices. And any policy decision can trigger differences of opinion and may also turn out to be wrong in hindsight. But that doesn't make them subject to review by a tribunal. There is no end to regulations and regulators. So, shall we have a regulator to review the decisions of the Supreme Court?

Sridhar Narasimhan

Email

Ensure their safety

It is unfortunate that 40 Indians have been kidnapped from Mosul in northern Iraq and their fate not known. There are about 20,000 Indian expatriates living in Iraq, mostly in the Kurd-dominated region and their safety and security cannot be compromised. New Delhi should look beyond just issuing a travel advisory and ensure that Indians in Iraq come to no harm. India should join hands with the Iraqi government and international agencies to draw up a contingency plan to evacuate its citizens to safer places besides strengthening security around the Indian mission in Baghdad.

NJ Ravi Chander

Bangalore

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