Wanted: An independent, accountable RBI
The new RBI governor may need to look at some of the structural issues within the RBI bureaucracy
The market seems to be developing a love-hate relationship with new Reserve Bank of India (RBI) governor Raghuram Rajan. On 4 September, the day Rajan took over, BSE Ltd’s benchmark equity index Sensex greeted him with a 1.83% rise. Last week, after his maiden monetary policy announcement, the Sensex lost 1.85%. On his part, Rajan has made it clear he prefers to do the right things, not bothering about Facebook likes. In less than three weeks since he took over, Rajan has done quite a few right things. Apart from presenting a smart policy, he has started moving things in RBI in a time-bound manner.