Reserve Bank’s image has been dented post demonetisation: RBI staffs
New Delhi, Jan 14: In a strongly worded letter addressed to Reserve Bank of India (RBI) Governor Urjit Patel, the United Forum of Reserve Bank Officers and Employees has alleged that post the government’s demonetisation move, the image of the Central bank has been dented beyond repair.
“Commenting on the “mismanagement” since November 8 when demonetisation was announced and the criticism from different quarters followed, the letter said, “Its (RBI’s) autonomy and image have been dented beyond repair,” an official of the All India Reserve Bank officers Association told ANI here.
“We request the Governor of the RBI, its highest functionary and protector of its autonomy and prestige, to do the needful urgently to do away with this unwarranted interference from the Finance Ministry and assure the staff accordingly as the staff feels humiliated,” the letter added.
Various employee unions of the central bank have objected to the government “impinging on RBI autonomy” and have written to Patel to take action against the “unwarranted interference”.
In a letter, they said the autonomy and image of the RBI has been “dented beyond repair” due to mismanagement and termed the appointment of a senior Finance Ministry official as a “blatant encroachment” of its exclusive turf of currency management.
“If true, this is most unfortunate and we take strong exception to this measure of the government as impinging on the RBI autonomy and its statutory as well as operational jurisdiction,” the letter said.
The Association asserts that the RBI is fully capable to co-ordinate the central bank’s currency chest operations which it has been performing over decades, and they do not need “any assistance” from anywhere.
The letter suggests that the union may assume that the RBI did not ask for deployment of a joint secretary of the Finance Ministry in its functions, rather it’s the latter which has imposed itself on the central bank, which is absolutely unacceptable and deplorable.
The official of RBI officers association stated that there have been no review in pension issue for last 16 years has displayed hostilities on the employees.
The letter sought to draw attention to the RBI Act 1934, which stipulates that the central bank was constituted lo “regulate the issue of notes and keeping of reserves with a view to secure monetary stability in India” and generally to operate the currency and credit system of the country.
The association also urged the media to voice grievances associated with the RBI.
The letter comes days after concerns about RBI’s functioning being raised by at least three former governors — Manmohan Singh (former prime minister), Y. V. Reddy and Bimal Jalan. Former deputy governors including Usha Thorat and K. C. Chakrabarty have also voiced their concerns in this regard.