Though talk about a >“rift” between the RBI and the government has been denied (March 23), potential differences between the Reserve Bank and the Finance Minister must be seen against the background of fresh liberalisation initiatives that are being sought to be unleashed by the government. The RBI was in a similar predicament under UPA rule as well. When neo-liberal policies go unchecked, they create imbalances in the system which the RBI, as a regulatory body, cannot be standing by watching silently. We have seen enough in the last decade of how financial systems have been collapsing across the world. The government does not have the absolute licence to carry out its agenda just because it has an overwhelming mandate from the people especially as the votes cast have not been decided on the basis of such an agenda. It must be remembered that the RBI has been acting on its script which is something that has saved the country from financial ruin.
K. Baskar,
Chennai
