1. RBI’s autonomy should be kept intact: Manmohan Singh

RBI’s autonomy should be kept intact: Manmohan Singh

The RBI and the Finance Ministry need to work in harmony, former Prime Minister Manmohan Singh said today, even as he stressed on the need to keep the central bank's autonomy intact.

By: | New Delhi | Published: May 9, 2015 8:58 PM
Manmohan singh

The comments from Manmohan Singh, who has served as RBI Governor as also as Finance Minister in the past, assume significance as they come against the backdrop of reports about differences between RBI and Finance Ministry on multiple issues. (Reuters)

The RBI and the Finance Ministry need to work in harmony, former Prime Minister Manmohan Singh said today, even as he stressed on the need to keep the central bank’s autonomy intact.

The comments from Manmohan Singh, who has served as RBI Governor as also as Finance Minister in the past, assume significance as they come against the backdrop of reports about differences between RBI and Finance Ministry on multiple issues, including on interest rates and on the proposed shifting of some powers away from the central bank.

“I would like the two institutions to work in harmony,” Singh said. He had served as RBI Governor from September 16, 1982 to January 14, 1985, and then as Finance Minister from 1991 to 1996, before becoming Prime Minister for two consecutive terms during the 2004-2014 UPA rule.

“I’ve served in RBI. So, I know the importance of RBI. Its autonomy should be kept intact,” Singh told reporters on the sidelines of an award function here.

“I’ve been Finance Minister also. Since I have served as both RBI Governor and as Finance Minister, I would like to see the two institutions work in harmony,” he added.

“RBI is a great institution … Finance Minister (Arun Jaitley) has already said that there is no disconnect between the two,” Singh said.

There have been reports about differences between RBI and Finance Ministry over the structure of a new agency that was to manage public debt, among other issues, including setting of policy rates.

In his first full-year Budget in February, Jaitley had proposed to set up Public Debt Management Agency and shift the regulation of government bonds from RBI to market regulator Securities and Exchange Board of India (SEBI). The proposal generated a lot of controversy, with the RBI raising concerns and questioning the timing of the move.

However, the government has now deferred the PDMA plan and dropped the proposal from the Finance Bill, 2015, passed by Parliament this week.

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  1. A
    A.Narasimha Narasimha
    May 10, 2015 at 7:12 pm
    There should be checks and balances. It is good for the Government and the RBI.
    Reply
    1. A
      Ashutosh
      May 9, 2015 at 10:02 pm
      IMF agent - nobody asked for your advice.
      Reply
      1. D
        david
        May 10, 2015 at 3:01 pm
        Better he should remain mum as usual.
        Reply
        1. H
          Holy Cow
          May 10, 2015 at 12:29 am
          BTW PDBA is NOT a good idea.. At least not for india and most certainly not now. Next thing you know these Debts will be dumped in the open markets as junk bonds and public will be left holding those worthless papers due to sheer leveraging and risky speculation. (Read: When Genius Failed- THe rise and fall of Long Term Capital Management and also Liar's Poker which also deals with similar subject both available as a free pdf download off google search. it tells what these junk are, how they operate and how it all ends).
          Reply
          1. H
            Holy Cow
            May 10, 2015 at 12:24 am
            He can SPEAK (without a certain italian lady putting words in his mouth?).. Yee I am ordering sweets.. Wait a minnt.. the report does not say anything about the source of his thoughts.. I request the media to find out.
            Reply
            1. S
              Seelan
              May 10, 2015 at 5:35 am
              Autonomy from the Deserter Sarkar. Within the next 4 years The autonomy of RBI, Judiciary, Media, NGOs, CIC, UGC, IITs, IIMs & CAG will be gone. Also the individual freedom of expression will vanish.
              Reply
              1. D
                Deep
                May 11, 2015 at 3:04 am
                MMS has no credibility or authority to say anything.
                Reply
                1. P
                  PL
                  May 10, 2015 at 3:23 am
                  I think Man Mohan Singh had done enough good or bad for the country and should take sabbatical from appearing in public or giving comments. He had his time long enough and now let others do their work. No body is asking his advice an I ma sure there are many other good people who know what to do. He will be remembered by the history as the only Pm who served just to be on the PM seat, had no courage or independance to work while decisions were taken by congress president. he will called rubber stamp PM
                  Reply
                  1. S
                    Sadasivan
                    May 10, 2015 at 6:56 am
                    There should always be checks and balances,Viewed from this point,the RBI is extremely dangerous for India,s Besides,it is reported to be a mere puppet of the BIS,IMF,WB,Bilderberg,Trilateral Commission,CFR, etc. Similarly IMMUNITY tp Pms should also be withdrawn.Only checks and balances ensure Justice. RBI enjoys absolute autonomy and it is dangerous for India POLITICALLY and economically,as M M Singh himself has proven with his crony capitalism and absolute CRUELTY in the pricing of petroleum fuels.
                    Reply
                    1. S
                      Sadasivan
                      May 10, 2015 at 6:59 am
                      There should be checks and balances.hence RBI's autonomy is bad for India POLITICALLY and economically.if not,the present RBI Chief and the succeeding ones will be PMs of India. M M Singh himself was a mere Crony capitalist.
                      Reply
                      1. B
                        bangalorean
                        May 11, 2015 at 4:01 am
                        Uselss yes madam ex-PM -what else he can say .
                        Reply
                        1. KARUNA
                          May 13, 2015 at 9:29 am
                          ONCE HE MADE A STRONG SPEECH ON CORRUPTION ADVISING THE CBI OFFICERS HE HAD MADE COUNTRY LOSE 30 LAC-CRORES NATIONAL ETS IN 10 YEARS IN COAL-SECTOR ALONE. ALLOWING THE TOP -LEVEL CORRUPTS TO AM SEVERAL THOUSAND CRORES WORTH CORRUPT MONEY.PARADOXICAL GOVERNANCE INDIA HAS SEEN.
                          Reply
                          1. v
                            varghese.al
                            May 10, 2015 at 10:59 am
                            Indian economy is striving today because it was guarded well by experts in the field who were best available contemporary. those who tried to demolish strength of India in many way, brought to their knees by all its ruler in time of need without heeding the outside pressure. RBI policy have pla critical role always. who bark on opening up widely and quickly in hurry to be investigated further on their real intention.
                            Reply
                            1. C
                              Citizen
                              May 9, 2015 at 10:33 pm
                              At last he opened his mouth to put his experience and expertize for the benefit of nation has he done this during his 10 year tenure as PM things would have been in a different way for the nation/his party. Jaihind
                              Reply
                              1. Washington America
                                May 10, 2015 at 9:22 am
                                shut up and go to sleep again till your italian master brings food
                                Reply
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