Letter to BS: RBI should not try to be more royal than the king himself

It must be remembered that the governor and the deputy governors of the RBI can continue in their position as long as they enjoy the confidence of the government in power

The recent showdown between the Reserve Bank of India (RBI) and the government of India (GOI) was unwarranted. The team of bureaucrats at the Ministry of Finance that was disturbed by the unpalatable attack by the Deputy Governor Viral Acharya on the government’s stand on the relaxation in prompt corrective action norms and restrictions on further lending and on a special liquidity window for non-banking financial corporations, must have advised their boss to assert himself. Finance Minister Arun Jaitley questioned the RBI Governor Urjit Patel on why the regulator failed to arrest the ballooning corporate debt and mounting non-performing assets. 

The