This refers to the interview with D Subbarao (July 26). The book, for some time to come, will be a reference point for debates on the relationship issues between the government of India and the Reserve Bank of India.
Nobody can dispute that positions like those of RBI governor cannot be filled using processes followed by professional bodies like UPSC, if that is what "bureaucratic process" means. But, though the quality of incumbents has not been compromised in selecting RBI Governor on 20 out of 23 occasions, the recent trend of either extracting commitments from appointees or harassing them by announcing "expectations from RBI" is disturbing.
In his book, Subbarao has said Rakesh Mohan, whose name was floated as a successor to Y V Reddy, was dropped as P Chidambaram felt Subbarao, being a civil servant, was more amenable to GOI discipline. The main issue discussed in the FM's chat with Subbarao, where C Rangarajan was also present, was a follow up of the FSLRC recommendation on Monetary Policy Committee.
PM and FM should have the final say in the selection of incumbents to bodies like RBI. But, there is a need to expand the catchment area, to offer better remuneration for top positions, and make the minimum tenure five years.
M G Warrier, Mumbai
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