Autonomy of RBI

This refers to ‘Dealing with govt control over central banks’ (April 1). It is crucial to consider the words of James Freeman Clarke, “A politician thinks of the next election; a statesman thinks of the next generation.” In this context, replacing “statesman” with “RBI” would be fitting.

It prompts reflection on whether the RBI possesses the necessary autonomy to formulate monetary policies geared towards the long-term stability of the economy. Fiscal and monetary policies function as the two wheels of an economy, with the government primarily responsible for fiscal policies.

Collaboration between the government and the RBI is essential to ensure growth and control inflation. However, over time, there has been increasing reliance by the Central Government on the RBI, whether for borrowing needs or financial support. Even in managing borrowing costs, the Central Government often looks to the RBI to adjust short- and long-term interest rates. A pertinent question arises: do these actions compromise the independence of regulatory institutions like the RBI?

Srinivasan Velamur


Different objectives

The scope, objectives and the ambit of both the RBI and the government are different. While the former focuses more on long term financial stability through manoeuvring of the interest rates periodically and in designing various measures in channelising the funds flow between banks and the borrowers, the latter is more concerned about political gains on introduction of few measures routed through the former. With the Centre aiming to push India to reach the coveted position of third largest economy, it is time that required strength is built in lifting the administration of the RBI to greater heights.

RV Baskaran


Election tourism

Apropos ‘A pitch for election tourism’ (April 1), indeed this will help foreigners know about the various aspects of parliamentary election held in India. Right from filing nomination till the end of the election, foreigners could observe various campaigning strategies by the candidates and how they reach the people with their party’s manifestos.

Also, election tourism could include visits to historical places of prominence.

NR Nagarajan

Sivakasi, TN

Rainwater harvesting

The acute drinking water crisis in Bengaluru, highlighted by a shortage of about 2000 million litres per day, underscores the urgency of adopting sustainable water management practices like rainwater harvesting (RWH).

Despite mandates like the BWSSB Amendment Bill 2021, RWH adoption remains low. Offering tax incentives for RWH systems could incentivise citizens, aligning with calls for greater awareness of RWH’s long-term benefits. Emulating Odisha’s subsidy model could further bolster adoption rates statewide, conserving groundwater and enhancing environmental sustainability.

With concerted efforts, Bengaluru can mitigate its water crisis by RWH and can contribute to sustainable water management, ensuring a more resilient future.

Vijaykumar HK

Raichur, Karnataka