What has Rahul Dravid got to do with Reserve bank or the financial policies? Ask Raghuram Rajan and he has got an interesting analogy for you.
He gave two terminologies to describe the role of the RBI. Former Reserve Bank of India (RBI) governor Raghuram Rajan has said the RBI is like a “seat belt”, which prevents you from any mishap, or “Rahul Dravid”, who plays sensibly and thoughtfully. Rajan mentioned that in current tussle with the Centre, the role of central bank is to be the wise counsel just like Dravid, and not to make operational decisions and certainly not to be loud as Navjot Singh Sidhu . Sidhu was quite an attacking batsman who always played more shots and tried the risky methods more often.
Rajan further said that “I’m very worried about the change in it as they (RBI board members) are supposed to be the wise people who bridge differences, rather than force greater ones. We’ve had excellent people on its board and there are still very good people on those boards. So I would hope that they would come together to bridge these differences and reduce some of the noise that is coming. I don’t think India should have a breakdown in the dialogue between the central bank and government.”
“Issue of fraud is not necessarily the same as willful defaulter. Wilful defaulter doesn’t want to pay but hasn’t run away with the money. Full arm of law should be applied to bring frauds to book, it’s work in progress. If frauds go by unpunished, it simply encourages more fraud. If there is a sense that there is no place on earth where you can hide because the long-arm of the Indian law will come after you, I think it will send a very sound message,” he said.
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