‘Humiliated’ by Demonetisation, do away with interference: RBI union to Urjit Patel

Mumbai, Jan 14, 2017: The association representing employees and officers of the Reserve Bank of India (RBI) on Friday wrote to governor Urjit Patel, expressing their deep concern over alleged interference by the central government in the affairs of the apex bank.

In a letter, they said the autonomy and image of RBI have been “dented beyond repair” due to mismanagement and termed appointment of a senior finance ministry official as a “blatant encroachment” of its exclusive turf of currency management.

“An image of efficiency and independence that RBI assiduously built up over decades by the strenuous efforts of its staff and judicious policy making has gone into smithereens in no time. We feel extremely pained,” the United Forum of Reserve Bank Officers and Employees said in the letter addressed to Patel.

The union said that it assumed the RBI did not ask for the deployment of the joint secretary in its functions; rather that it was the Finance Ministry which had imposed itself on RBI which it said was ‘absolutely unacceptable and deplorable’.

“Our attention has been drawn to a recent news item that Finance Ministry has sent a joint secretary to coordinate RBI cash ops. If true, this is most unfortunate and we take strong exception to this measure of the government as impinging on RBI’s autonomy and it’s statutory as well as operational jurisdiction,” the letter read.

“We want to state very categorically that RBI is fully capable ‘to co-ordinate the central bank’s currency chest operations’, which RBI have been performing over decades, and we do not need any ‘assistance’ from anywhere,” the employees wrote.

However, the unions also requested the RBI Governor to protect the central bank’s autonomy and prestige.

RBI union letter to Urjit Patel:


Wefornews Bureau

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