Central bank is not independent from govt: Ex-RBI governor Y V Reddy

The balance between the state and the market continues to be governed by pragmatic considerations, says Reddy

Former Reserve Bank of India (RBI) governor Y V Reddy said the central bank had been created by the government to bring in trust and faith and it could not be independent from its creator. 

The substantive elements of economic policies remain the same since 1991, despite several changes in the political leadership and this change is not making any significant difference to the continuing pragmatic approach, he added.

“A central bank has been created by the government, not by the Constitution. It has been created to assure people that money and finance are important, and are apolitical. So, please have faith.