This refers to the report "RBI governor might get veto in price stability mechanism"(October 10). While such gestures to calm dissent are normal in governance, the recent initiatives from the finance ministry, including the hurry with which some of the recommendations of the Financial Sector Legislative Reforms Commission are being pushed through, gives the impression that the new dispensation in Delhi has not fully recovered from the hangover of the previous coalition government's "give-and-take" approach in making decisions.
It will be an unhealthy message to the regulators and stakeholders in the financial system, if such "concessions" to the Reserve Bank of India (RBI) and its current governor appear to be a privilege available to some, in certain situations. There is a chance of lesser mortals among regulators becoming less amenable to government's guidance.
The government should not shy away from normal procedures and parliamentary debates before implementing measures of long-term implications for the economy. The sooner the transparency in policy formulation and respect to legislative processes and procedures are restored, the better for the country.
M G Warrier Mumbai
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