Statutory bodies like RBI should not be made subservient to the whims and fancies of officials in ministries for exercising the powers they are expected to exercise as part of their mandated functions. RBI has faced problems on such issues relating to banks earlier due to blurred clarity in powers and interpretation of law. Perhaps, RBI has learnt from the recent experiences while handling new generation private sector banks which did not survive and the interests of the clientele had to be protected by the regulator with GOI support. Last ten years or so, RBI has been loitering around North Block for permission to continue a pension updation granted by RBI in exercise of powers available under Reserve Bank of India Pension Regulations which is being questioned by finance ministry which has interpreted the pension regulations differently. An amendment to RBI Pension Regulations made to conform to the GOI interpretation of the regulations is pending with finance ministry for more than a year. Such experiences too, can put RBI on guard while acting on trust.
- M.G.Warrier
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