RBI over

'A new monetary policy committee that will move interest rate setting powers from RBI Governor to the broader policy panel is likely to start functioning by the third quarter, a top finance ministry official said. The six-member panel, which will include RBI Governor and three nominees of the government, will set interest rates to bring CPI inflaion to pre-set targets,' says a quarter inch item in Briefly on the Economy (page 17) of The Indian Express. RBI is a news in brief. Prime Minister Mr. Modi and Finance Minister, Mr. Arun Jaitley have zeroed a venerable institution, there is none left. Dr. Raghuram Govind Rajan, the RBI governor, does not think it worth a resignation letter. And the business press, business channels and all the banking experts do not think the issue big enough to broadcast their views; if Sensex drops by one point, they wail as if someone in the family died. Some could argue for merging RBI with the Finance Ministry, as has happened; but no comments, preferring quiet? Mr. Surajit Bhalla (if me am not wrong) in The Indian Express had doubts over the longevity of the Supreme Court as an institution and rested faith on RBI. Its over. Dr. Raghuram Rajan has given up. He who talks on everything, is not talking on RBI. He dissented bravely on dissent. Isnt that odd? Mr. Arun Jaitley has won a process started by Mr. Pranab Mukherjee and Mr.P. Chidambaram; Dr. Raghuram Govind Rajan has softened the headbutting beginning with Dr. Yaga Venugopal Reddy. A six member committee with three government nominees will decide interest rates; RBI governor will have a casting vote of the commoner, not the veto vote; if the committee decides 4-2 in favour of interest rate cuts with RBI governor in the minority, RBI will have to suck it. Pass and over. RBI an institution is dead. None is protesting, not the media, not the Opposition, not Dr. Raghuram Govind Rajan, RBI governor. Mint Street can now freely mint currency.