RBI must tender accountability to enjoy autonomy: Duvvuri Subbarao

CHENNAI: The Reserve Bank must tender accountability in order to claim and enjoy autonomy from the government, Governor D Subbarao today said.

He also mooted the idea of the RBI Governor going before a select committee of the Parliament in an open function like in the US and the UK, to make regular presentations on economy and monetary policy.

"We must be conscious to the fact that we are unelected officials. And our mandate is that the Government has appointed us.

"In order to claim, demand autonomy from the government, and to enjoy that autonomy, we must remember that we must tender accountability," Subbarao said at a function here.

"Reserve Bank must take its accountability seriously if it wants to be knowledge institution. We are quite aggressive talking about our autonomy. We jealously guard our autonomy (status) trying to protect and promote the Reserve Bank's autonomy.

"But, the flip side of autonomy is you cannot demand autonomy unless you are prepared for accountability," he said.

At the recent Financial Sector Legislative Reforms Commission meeting, held recently, Subbarao said he had suggested the idea of the Central Bank Governor appearing before select Members of Parliament and tender accountability in order to enjoy the autonomy status of the Reserve Bank.

"At the FSLRC meeting, I suggested that the Governor should go before a select committee of the Parliament in a open function, not in a cabinet meeting. Just like it happens in US, UK, where the governor go and give evidence before the committee.

"In India too, the Governor must go and tender accountability to members of Parliament select commmittee. That will be a good practice," he said.

Subbarao was delivering a lecture on "Changing Role of RBI" at the year-long concluding event of the golden jubilee celebrations of Reserve Bank Staff College here.