Needed: A new relationship contract between RBI and govt
Archaic provisions of the RBI Act and its powers to appoint senior functionaries have given the finance ministry adequate levers to control the central bank
Two recent books, one by former Reserve Bank of India (RBI) governor, Urjit Patel, and the other by former RBI deputy governor, Viral Acharya, have reignited the debate on central bank autonomy in India. Patel and Acharya resigned from their respective posts before their terms ended. Acharya has claimed that both paid the price for resisting undue interference from the Union finance ministry.