This is with reference to TCA Srinivasa-Raghavan's well-argued article "Why the CPI-M must oppose the IFC"(August 2). As pointed out in the article, former Reserve Bank of India (RBI) deputy governor Usha Thorat in her article in the Indian Express has brilliantly argued the case for not rushing through the Indian Financial Code (IFC). Economist and former deputy governor S S Tarapore too, sought to retain the RBI's present capabilities.
The RBI cannot be compared with central banks of other countries with limited central banking functions. In the past, the government has depended on the RBI on several occasions for coming out of tricky situations.
We need not leave the task of protecting the RBI's autonomy to the Communist Party of India (Marxist) or to any political party, for that matter. The people should fight the disruptive forces within the country and outside that hope to cash in on the weakness of the financial regulator.
RBI Governor Raghuram Rajan's term will end in 2016. It would be in the county's interest if the government persuaded him to stay on for another term, this time till 2021.
Let us trust Union Finance Minister Arun Jaitley and his Minister of State Jayant Sinha when they say they are open to discussion on the IFC. The Financial Sector Legislative Reforms Commission report needs to take into account the notes of dissent and recommendations. There is need for fresh debate on the basis of the observations made by the two former RBI deputy governors.
M G Warrier Mumbai
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