Business Standard

Why should the government own the RBI?

When it comes to borrowing, governments behave exactly like any private citizen, says the author

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A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi. Photo: Reuters

T C A Srinivasa-Raghavan
Back in 2015, it may be recalled, everyone was getting very excited about Raghuram Rajan, Reserve Bank of India (RBI) governor, and the government. M G Warrier, an old RBI hand, had commented thus: 

“There have been unending disputes about whether the curd is dependent on the pot for its existence or whether the pot gets value addition because it contains the curd (Thakrasyaadhaaram Ghatam vaa Ghatasyaadhaaram Thakram?)” 

I don’t think we will ever know. But that is probably why friction is inherent in the relationship and flares up from time to time. And that brings me to three questions
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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