Rajan pitches for RBI’s independence

The RBI Governor, who completes his three-year term on Sunday and will return to academia, also pitched for elevating the ranking of central bank chief saying it is dangerous to have a de facto powerful position with low de jure status. 

“The bank should be independent and should be able to say ‘no’ to seemingly attractive proposals,” he said delivering a lecture on ‘Independence of the central bank’ at the St Stephens College. But in the same breath he went on to say that the bank cannot be free of all constraints as it has to work under a framework set by the government.