Coordination and not confrontation is what is required between the Central govt and the Regulators particularly the Reserve Bank. All other regulators of the financial system should cooperate with the Reserve Bank and should be under the guidance and supervision of the Reserve Bank. Then only the so called Financial Stability can be achieved.
- Dr.T.V.Gopalakrishnan
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In their own selfish interest, those who are in charge of governance should reconcile to the fact that health of economy is dependent on a vibrant financial sector for which a central bank commanding respect from within the country and at international forums is a pre-requisite. For historic reasons RBI has been entrusted with several responsibilities which elsewhere are not part of central bank's role. RBI has been with GOI's support has been performing its role successfully. GOI should continue to ensure that RBI is not weakened. For the purpose it is essential to allow functional autonomy within the contours of the statute. While on the subject, the need for a strong balance sheet with adequate capital and reserves for RBI also has to be emphasised.
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