What made Raghuram Rajan say RBI should be like Rahul Dravid, not Navjot Singh Sidhu

Former Reserve Bank of India (RBI) Governor Raghuram Rajan finally broke his silence on the ongoing tussle between the government and the Central bank.

Rajan is currently working as a professor of finance at the University of Chicago Booth School of Business. (Image: PTI)

New Delhi: Former Reserve Bank of India (RBI) Governor Raghuram Rajan finally broke his silence on the ongoing tussle between the government and the Central bank. Speaking at a TV show, Rajan said that the main aim of RBI should be to protect the institution, provide sensible advice and not serve interests of the others. “The aim of the RBI is to be Rahul Dravid and not Navjot Singh Sidhu,” said the former Governor while speaking to CNBC TV18. Rajan is currently working as a professor of finance at the University of Chicago Booth School of Business. Sharing his take towards the ongoing tussle between government and the RBI, he said that the unhealthy disagreements between both should not escalate further. “Once you have appointed a governor or deputy governor, you should listen to them,” Rajan said, adding that he commends Viral Acharya for warning in support of RBI’s autonomy. “The rift between the government and RBI can be resolved if both sides respect each other’s intent,” he told CNBC TV18. Further commenting on the government’s attitude towards the issue, Rajan said that there is no free lunch and there is no additional money government can get. “You can't pick and choose which regulation you like, which you don't, former RBI governor said during his interview. Rajan also stated that the Central bank needs adequate capitalisation for high creditworthiness. “A lot of noise has been inserted in the RBI board's deliberations in the recent past; running over a central bank hasn't been good for any economy,” he added further. Last week, the Central Information Commission has issued a showcause notice to Reserve Bank of India Governor Urjit Patel for allegedly dishonouring a Supreme Court order regarding the disclosure of a wilful defaulters list. The commission asked Patel why the maximum penalty should not be imposed on him for withholding the list despite a three-year-old court order, news agency PTI reported. The move comes amid an ongoing row between the top bank and the central government. The commission also asked the Prime Minister’s Office, Finance Ministry and the RBI to make public former RBI Governor Raghuram Rajan’s letter on bad loans.