GOI is reported to have appointed this year two private auditors to audit the accounts of the RBI with out the usual consultation process. In this context, views have been expressed by a columnist ( K.P.Krishnan) in ET that the accounts of the RBI should be audited by CAG as already recommended in the Srikrishna Commission Report. I recall that when a similar demand was made in the Parliament quite some time ago, the then Finance Minister ( Shri Y.B. Chavan) had in his forceful reply in the Parliament argued against it and the suggestion was not accepted. It would be worthwhile for the RBI to dig into the Parliamentary debate records and quote them to the Government if it does not consider it necessary for the CAG to audit its accounts. The Bank's argument against the audit of its accounts by the CAG would be strengthened if its expenses (Establishment and other expenses) are properly regulated and there is no laxity in their control. RBI used to be extremely conservative in the past so much so that even the rooms and the furniture of the officer-in -charge (especially of its small regional offices located in rented places) and other senior officials were so ordinary that commercial bank executives were embarrassed when they called on the RBI officials. But, in the recent past, one gets an impression that the pendulum seems to have swung to the other extreme not only in the physical facilities offered to its staff but also in the 'perquisites' granted. Even while granting better facilities to its staff in terms of emoluments and perquisites (this has to be done in order to attract good talent), the Bank would be able to regulate the expenditure by keeping an eye on staff productivity and staff strength and being very firm in this area.
- A.Chandramouliswaran
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Oldtimers would vouch for the above comments of Shri AC.RBI traditionally had been"Reserve" Kanjoos and would think hundred times the repurcussions of its decision to extend some financial benefit to its staff. In the past whenever employees association would ask for some facility on the line of GOI employees, the Bank would say it was not available in the Banking Industry and when some facility from the Banking Industry was asked for, the Bank would plead that GOI would not approve. That showed that how sensitive the Bank was to any extra expenditure howsoever justified that might be.That is to say that despite sitting on the mountains of money, the Bank has been very cautious in its expenditure.
There had been attempts in the past advocating to bring RBI within the purview of CAG Audit (during 1992 securities scam also)But the Government of day did not find favour with such moves and wanted RBI to have its own autonomy.
Things appear to have changed now. With Governor,RBI not yielding to MOF, the whole machinery seems to have become hostile to RBI and somehow want to force RBI in submissiveness. Report of the FSLRC is another attempt in this direction. When RBI the central bank of our country is made to forego its independence, that will be black day in our history. May good sense prevail upon them who are out to destroy RBI, an outstanding institution nurtured over years.
Manohar Mahajan
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