RBI'S AUTONOMY SHOULD BE RETAINED.
The latest confusion regarding trimming Reserve Bank Of India's powers
about monetary policy making is not in the interest of the country.Under
the present system,the RBI Governor has veto power over the existing
advisory committee of RBI members on the monetary policy for setting
the interest rates. One wonders why the governments of the day wants
to clip the powers of RBI on deciding policy rates.
Even in 2010,during the budget speech, the then Finance Minister mooted
the idea of creating a Financial Stability & Development Council chaired
by himself.It was feared that this body may become a "Super Regulator"
in the hands of the bureaucrats of the Finance Ministry.
Reserve Bank of India,the Central bank of the country should be
autonomous and should be an adviser to the government on the monetary
policy and also to set and regulate the interest rates.