RBI employees body against creation of DMO

KOLKATA: A section of Reserve Bank employees has opposed creation of the separate debt management office (DMO) by the government thus taking away the task of management of public debt from the hands of the apex bank.

In a statement, All India Reserve Bank Employees Association general secretary Samir Ghosh said that once the RBI was bereft of the managing public debt, financially weaker states would find it difficult to sell their papers and a rate war would ensue.

This, he said, would vitally affect the weaker states of the country.

Ghosh said that countries like Germany, Japan, China, Italy and Denmark had vested the responsibility of managing public debt in the hands of central banks.

The association warned that the government should take careful steps in creating a separate DMO and also required a national consensus after wider consultation.