The autonomous status of RBI is primarily in operational and functional areas, in which it has developed significant capabilities since it was established in 1934. This independence, however, is not without boundaries. The Union government, as the monopoly shareholder in RBI, has a bounden duty to monitor, evaluate and exert policies that are in the best interests of the country rather than being a helpless spectator.
Although the government is directly answerable to Parliament and the people, the central bank does not have such accountability. It is, therefore, not surprising that the general secretary of the All India RBI Employees’ Association has objected to the Union government’s proposal to seek approval before finalising salary and perks of RBI employees even before the RBI governor could react to the suggestion. Obviously, the Association would find it easier to arm-twist RBI officials rather than deal with the government, which is a Herculean task. RBI may be specialising in money management but it has yet to prove its mettle in the management of personnel and trade unions. RBI employees draw more than their counterparts in commercial banks and everyone knows about the risk and responsibility status they enjoy. It is high time the government introduced a unified service akin to the Indian Administrative Services for all banks.
B Venkateswaran, Chennai
