It is too early to pass judgments on Dr Subbarao’s tenure as RBI Governor. Former RBI Deputy Governor S S Tarapore described the purchase of 200 tonnes of gold in 2009 to diversify the forex reserves as one of Governor Subbarao's outstanding achievements and said that ‘history would etch his name in gold’. Initially, it is common knowledge that, he was picked up under the presumption that he would be “North Block’s representative” at Mint Road. But he quickly started talking with elegance and dignity that have got deeply scripted in RBI’s tradition and did not hesitate to change his own views which were based on the information given to him by ‘Babus’ in North Block. The academic background coupled with IAS grooming helped him have his way when intuition told him that the central bank’s policy has implications much beyond immediate political gains or the 2014 Election prospects. Among other things his tenure as Governor will be remembered for the transparency in policy perceptions, the message that government and central bank can have different perceptions on inflation and growth and still co-exist, bringing back the focus on financial inclusion and ‘knowing when to stop’.
- M G Warrier
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