A reputational crisis for the RBI

Unable to change with the times, the regulator today no longer inspires absolute confidence

For most Indians, including this writer,  the Reserve Bank of India (RBI) until a few years ago stood for prudence, success, and responsibility. It was an institution that Indians were proud of. Its policies and strong regulation insulated India from the 2008 financial crisis. The way it managed balance of payments and currency rates was certainly fit to be used as case studies in leading management institutes. However, of late, unfortunately, RBI does not instil the same confidence.

The sheen from RBI’s unquestionable reputation  has worn off.  A series of events in the last couple of years tell a story