Pushing for accountability: SJM

The RBI board will be seeking more accountability from the governor, says Ashwani Mahajan, who is coconvenor of the Swadeshi Jagaran Manch. “Now onwards, the RBI will be functioning in a more prudent manner, looking at the specific needs of the country,” he said. Provided Modi gets re-elected, the RBI board could ensure a greater role for banks “in the social and economic transformation of the country”, he added, reports Reuters.

Modi has packed the RBI board in the past few months with people with links to his party and economists who favour greater government influence over the RBI. In August, RSS ideologue S Gurumurthy and Satish Marathe, a former banker who was in the student wing of the BJP, were named to the board.

And last month, the government

appointed retired bureaucrat Revathy Iyer and Sachin Chaturvedi, head of a Delhi-based think tank, while removing Nachiket Mor, who was close to RBI officials.

It means that of the 18 members, five come from the bureaucracy, two are finance ministry officials, and two have close links to Modi and the BJP. Four have a business background, and the other five are Patel and his four deputy governors.

Previously, the RBI would propose new board members or the government would at least consult the governor before nominating members. Under Modi, there has hardly been any consultation, said one former official directly aware of the appointment process.

In a sign of the marathon meeting that could be in store, the last board meeting on October 23 ran for eight hours, taking up only two out of the 12 agenda items. The rest will be discussed on Monday.