RBI union proposes collegium for selection of governors

24

RBITo ensure the autonomy of the Reserve Bank of India, the central bank’s employees association has called for a collegium of experts to select a new governor and deputy governors.

The move comes a day after the RBI announced the resignation of deputy governor Viral Acharya. The youngest ever deputy governor resigned from his position citing unavoidable personal circumstamces.

As per Section 8 of the RBI Act of 1934, the governor and deputy governors are appointed by the government.

“Such sensitive and very important positions at the central bank must be decided not by a few ministry officials, even not by the finance minister himself, but by a collegium of experts comprising former governors, other prominent central bankers, and economists,” the All-India Reserve Bank Employees Association said in a statement.

Only such a body can properly assess and judge the competence, knowledge, and experience of the individuals for such posts, it added.

The association said, “Only such appointments can ensure neutrality as well as the independence and autonomy of the central bank, and also prevent undesirable political and purposive interference in such nominations.”

They expressed regret on the premature departure of Acharya and said the personal reason cited by the deputy governor does not tell the whole story.

“Deep and prolonged differences with the finance ministry on the autonomy and the independence of RBI is supposed to have quickened Acharya exit,” it claimed.

Acharya resigned six months before the scheduled end of his term on January 20 next.

 

 

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the BFSI industry. Join Us for 4th BFSI CTO Summit, Mumbai and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.