EDITORIAL

DONOT ERODE RBI'S AUTHORITY.

During the Budget speech,the Finance Minister, mooted the idea
of creating a Financial stability and Development Council chaired by FM himself.This Council will" monitor macro prudential supervision of the economy including the functioning large financial conglomerates and address inter regulatory coordination issues". This may sound a good idea on the face of it, but it creates a suspicion in the minds whether this council may become a Super Regulator in the hands of the bureaucrats in the Finance Ministry.

In the present scenario,Reserve Bank of India, being the central bank, is capable of carrying out the tasks and also advise the Central Government on Monetary policy and there is no requirement of another 'Super Regulator'.