Outgoing RBI Governor Raghuram Rajan argues for independent RBIRaghuram Rajan, who is going to step down as the RBI Governor tomorrow, suggested that it was legally not possible to pay a special dividend over and above the surplus generated by the RBI. He stated:"The RBI has to work under a framework set by the government and cannot be free of all constraints". Explaining the ups and downs in terms of macro-challenges, policy choices and managing fiscal and monetary flanks of the stabilization policy, outgoing RBI Governor, Raghuram Rajan argued for independent central bank for the country's macroeconomic stability. He was addressing the students of St. Stephens College, New Delhi.
Mr. Rajan has been advocating autonomy of RBI for a quite long time. What is the opinion of the Members of ISC in this regard. Would the proposed autonomy of RBI be beneficial for the economy of the country?