Govt replies to RBI union

The finance ministry on Saturday said it fully respects the independence and autonomy of the Reserve Bank of India.

This was in response to the RBI union alleging interference by the Centre in the working of the central bank.

The statement comes a day after the union wrote to RBI Governor Urjit Patel, asking him to uphold the bank’s autonomy in the wake of the demonetisation of Rs 500 and
Rs 1,000 notes. 

“There has been a report in sections of the press that some unions have alleged infringement of the autonomy of the Reserve Bank of India. It is categorically stated that the government fully respects the independence and autonomy of the Reserve Bank of India,” the ministry’s statement read.

In a strongly worded letter addressed to Patel, the United Forum of Reserve Bank Officers and Employees had charged that post demonetisation, the image of the central bank had been dented beyond repair.

It cited the example of an incident in which a joint secretary of the finance ministry was mandated by the government to ‘co-ordinate RBI’s cash operations’, which it described as ‘most unfortunate’.