Undermining the country's central bank is a recipe for disaster which the government must desist: AIRBEA

New Delhi, Oct 29 (KNN) Supporting central bank deputy governor Viral Acharya view of pitching for RBI’s independence, All India Reserve Bank Employees Association (AIRBEA) asked the government to stop nibbling at its autonomy.

Expressing concerns over the recent statements made by deputy governor Viral Acharya the association said “Undermining the country's central bank is a recipe for disaster which the government must desist.”

Delivering the A D Shroff Memorial Lecture on October 27, Acharya said that governments that do not respect central bank's independence would sooner or later incur the wrath of the financial markets. 

He said, "What matters is the effective independence with which these powers (vested in the Acts governing the RBI or any central bank) can be exercised in practice." 

Asking the government to stop arm-twisting the central bank, the association said both should talk and sort out the issues, instead of trying to ride roughshod over RBI and warned that “what they (government) are trying is at the expense of the nation”.