The editorial "Mutual distrust" (July 27) provides an excellent analysis of the controversy arising from the draft Indian Financial Code circulated by the government. Having said that, reducing the controversy over the constitution of the monetary policy committee to a case of mutual mistrust would be oversimplifying the matter.
The government's eagerness to do backseat driving in organisations that have mandated roles to perform has to be analysed. If there is lack of clarity in what is expected from a role, the government can make legislative changes. But it is a different story if it tries to control the "application of mind" by statutory bodies such as the Reserve Bank of India by pushing for majority presence of its (government) nominees in policy formulating forums. Government nominees on boards generally take their brief from the ministries concerned before attending meetings and independent thinking on their part is limited.
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The government's eagerness to do backseat driving in organisations that have mandated roles to perform has to be analysed. If there is lack of clarity in what is expected from a role, the government can make legislative changes. But it is a different story if it tries to control the "application of mind" by statutory bodies such as the Reserve Bank of India by pushing for majority presence of its (government) nominees in policy formulating forums. Government nominees on boards generally take their brief from the ministries concerned before attending meetings and independent thinking on their part is limited.
MG Warrier Mumbai
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number