Rajan backs Urjit on differences with Centre, says RBI board role worrisome, shouldn't intervene in ops

-The Times of India

Embattled RBI governor Urjit Patel’s predecessor Raghuram Rajan has come out in support of professionals leading the central bank, stating the regulator’s board should only ensure governance, not intervene in operational decisions.

“The RBI’s board is not an operational board. It is not led by professional supervisors or central bankers. These are all people from different walks of life whose main role is to play the wise people to advise, to counsel, to play a Rahul Dravid, to coach in some sense but not to make operational decisions and certainly not be loud like Navjot Sidhu,” Rajan said in an interview to ET Now.

Pointing out that earlier members included those with diverse backgrounds such as cooperative organiser Ela Bhatt and nuclear physicist Anil Kakodkar, Rajan said they limited their role to giving direction. “I think that is the role of the board rather than to intervene in operational decisions and to substitute their judgment for the judgment of the professionals who actually manage the RBI,” he said.

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The Times of India, 7 November, 2018, https://timesofindia.indiatimes.com/business/india-business/rajan-backs-urjit-on-differences-with-centre-says-rbi-board-role-worrisome-shouldnt-intervene-in-ops/a

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