Former Reserve Bank of India Governor Y.V. Reddy on Saturday said dual control by the Centre and the RBI is a problem in the banking industry.
Mr. Reddy, who was speaking at an event at the Indian School of Business (ISB) here, said the RBI said that it did not have enough regulatory powers. The government, however, says that the RBI has enough regulatory powers, he said.
What is the truth?
“If the regulator and government could not agree and cannot agree, what is the truth? The truth is that there is a problem of dual control. The Narasimhan Committee had recommended 20 years ago to end this. Till today, it has not ended,” he said.
To a query on job creation, he said, quoting from a recent international conference, the likely scenario from a global situation is that “most probably either 20-30% get employed and rest of them cannot be employed because technology will replace [humans].”
There could also be a restriction (in the future) on the number of days one can work in a week.
“Our (in India) strategy should be to maintain external sector balance and generate enough domestic demand and domestic supply... I believe that should be one thing which has to be clear. Not that we don’t believe in globalisation, global integration,” he said.
