Letter to BS: Why shouldn't bankers take instructions directly from FinMin?

The banking system is availing of a negligible percentage of its total resource needs from the RBI

This refers to the report “Das, bankers may not be on the same page over passing rate cuts” (February 21). Let us face the reality. Time was when interest rates were regulated, but banks respected and listened to the Reserve Bank of India (RBI) sermons. Today, rates are deregulated and bankers know that the RBI is in captivity and is parroting the government of India’s wishes without applying its own institutional mind. In such a situation, why shouldn’t bankers take instructions directly from the finance ministry or from the politicians?
 

Coming to the facts and figures, the 25 basis point