Reserve Bank of India Governor Urjit Patel on Wednesday told employees of the institution to protect the central bank’s integrity and not tolerate any attempts to tarnish its reputation. “One thing we should all zealously guard is the integrity and reputation of our organisation, and any act belittling the same should deserve zero tolerance from all of us,” Patel told his employees in an email.
This is the first time the RBI governor has addressed the central bank staff since assuming office on September 4 last year, reported PTI. “I am confident that all of us working together will rise to the occasion and face these challenges in a manner befitting the reputation of this esteemed organisation,” he said.
In 2016, the bank had tried to restore macroeconomic stability, Patel said. “While the policy actions have already shown positive effects, nevertheless, they are work in progress and need to be fine-tuned constantly to keep pace with the changing environment.”
News of the email surfaced hours after Patel briefed the Parliament’s Standing Committee on Finance on the demonetisation of Rs 500 and Rs 1,000 notes. He was summoned to provide details on the steps taken by the central bank to deal with the effects of the currency ban on the Indian economy.
The RBI governor reportedly told the parliamentary panel that it was not possible to gauge when banking operations around the country would normalise. He said that around Rs 9.2 lakh crore in new currency notes has been introduced into the economy since November 8, 2016, when the high-value bills were scrapped.
Moreover, there have been accusations that the RBI is dealing with interference from the Centre and has lost its autonomy. An RBI employees’ union had written to Patel, urging him to “do away with unwarranted interference” from the Finance Ministry. The United Forum of Reserve Bank Officers and Employees had said that the central bank’s image had been “dented beyond repair”. The forum represents three RBI unions, which include more than 18,000 employees of the central bank.
The RBI has been facing flak for being unprepared to tackle the cash crunch that followed the demonetisation announcement. On December 23, former prime minister and RBI governor Dr Manmohan Singh had questioned whether the top bank was given sufficient time to deliberate over the government’s currency ban decision.
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