more-inThe talk about independence of the central bank is a new phenomenon and the institution created by the government can never be independent, former Reserve Bank of India (RBI) governor Y.V. “A central bank is created by the government and not the Constitution. Mr. Reddy also pointed out that after he became the governor, people asked whether he was independent and whether the RBI was autonomous institution. “I replied saying, ‘Yes, I am independent and the RBI is an autonomous institution. He pointed out that the country learnt some key lessons in terms of economic and foreign exchange management.

Source: The Hindu December 06, 2017 19:30 UTC