Money & Banking

Govt meddling with RBI’s autonomy: union

Our Bureau Thiruvananthapuram | Updated on January 12, 2018 Published on January 13, 2017

The United Forum of Reserve Bank Officers and Employees has termed as unfortunate the reported decision of the Centre to depute a Joint Secretary to manage cash operations at the Reserve Bank of India.

“We take strong exception to this since it impinges on the RBI’s autonomy and its statutory and operational jurisdiction,” forum leaders Samir Ghosh, SV Mahadik, CM Paulsil and RN Vatsa said.

The RBI Act 1934 stipulates that the central bank has been constituted to ‘regulate the issue of bank notes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage’.

From 1935, for more than eight decades, the RBI has been managing the currency system of the country seamlessly and fulfilling its statutory responsibility. As in-charge of currency management of this vast country of 1.25 billion with huge needs of currency, it has developed and technologically perfected the system.

“We want to reiterate that the RBI is fully capable of coordinating its currency chest operations. We do not need assistance from anywhere,” the forum leaders said.

Published on January 13, 2017
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